2023-07-31 04:01:28
The four million households with variable rate mortgages in Spain they will have to wait at least until next year to notice the first relief in their monthly payment after a year of Euribor increasesaccording to a calculation based on the forecasts for this indicator up to 2024 prepared by the Funcas panel.
The first revisions that will cause a reduction in the monthly payment will not begin until April 2024 for those who update their mortgage once a year. In the case of mortgages that are reviewed twice annually, the relief will begin to be seen in January, as reported this Sunday 20minutos.
The strong interest rate hikes approved by the European Central Bank (ECB) since July 2022 – the last one, of 0.25 points was last Thursday – complicated mortgaged families.
The first increases in the monthly fee began to be noticed in January of last year, when the banks began to move the Euribor up, anticipating the decisions that the ECB would take later.
The most common in Spain is that the monthly installment paid for variable mortgages is updated once or twice a year with the latest 12-month Euribor published at the time of the review.
This is a mechanism that means that households do not notice the instantaneous impact of each rise in interest rates, but the blow comes once or twice a year, when the interest rate is renewed according to the Euribor.
The very dynamics of this indicator generated that the sharpest increases quota will occur in February, March and April for those who review once a year. In the case of families that update the loan interest every six months, the highest revisions were in October and November 2022.
According to these data, a home with an average mortgage (150,000 euros at 25 years, with a differential of one point over the Euribor) who reviewed his loan in February or March suffered a fee increase of up to 300 euros per month compared to the previous year. Applying this same example to a loan with a double annual review, the increase in the monthly payment reached 200 euros.
If we pay attention to the Euribor forecasts for the coming months, the sharpest increases have already occurred and the quota increases that are yet to come will gradually become milder.
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