It won’t go from being a small relief. Despite the slight fall experienced by the euribor during the past month of August -when it dropped from 4.149% to 4.073%-, those who must review their mortgage this month You will see your monthly payment increase considerablysince this descent does not compensate at all the strong rise that the indicator has experienced in the last six months or a year, the two most common periods for this operation.
In this way, if it is taken into account that the average loan for the purchase of a home in Alicante is 105,000 euros, with a repayment period of 25 years, those who reviewed in February will now pay almost 33 euros more per month -up to an average of 618.1 euros per month-, while those who did in August last year will experience a rise in up to 160 euro. Of course, a rise that would have been six euros higher without the data for August.
A situation that, in addition, will be repeated with all those who have to go through this process at least until the beginning of next year since, although the experts do not agree on whether the Euribor has already reached its ceiling or not, which yes they all have clear is that it will remain at a level very close to its current level well into 2024.
“The key is in the meeting on September 14, in which we will see if the ECB raises another quarter of a point plus the official rate of money or maintains it. If it raises it, the Euribor could reach 4.3% and, if it does not, it would remain between 3.5% and 4%”, explains Laura Martinez, from the iSavings portal. In any case, Martínez points out that what will follow that maximum will not be a pronounced drop, but a period of “plateau”, in which rates will be maintained for some time, with slight fluctuations, such as the one that occurred in April.
In other words, that the mortgaged will have to keep up the effort that they are doing to face their credit payments. And it is not a small effort: if you take into account the accumulated increases from december 2021 -when the Euribor was at negative 0.502 points-, the average monthly mortgage payment in the province has gone from 372 to 618 euros, that is to say, 246 euros more every month or, what is the same, about 2,950 euros more per year.
A not inconsiderable amount if one takes into account that the average declared salary in the province barely reaches 17,649 euros, according to data from the Tax Agency, one of the lowest in the country.
Despite this, the truth is that the latest statistics from the Bank of Spain show that Mortgage delinquency has even been reduced –in June it stood at 3.5%, 0.38 points less than a year earlier-, which is not surprising.
In this sense, the person in charge of communication of the association of financial users Asufin, Veronica Rodriguez, points out several reasons for this situation. On the one hand, there are many families that have taken advantage of the savings generated during the pandemic to pay off at least part of the mortgage and keep payments at bay. But, in addition, Rodríguez recalls that, after the previous crisis, the risk criteria, which means that the amounts granted were adjusted to the real payment capacity of the plaintiffs, compared to the rampages of the boom era, when many citizens obtained loans even higher than what they had paid for the house and which they used for other purchases .
But, above all, both the Asufin spokesperson and the iAhorro spokeswoman emphasize the fact that the job market remains strong and there has not been a significant loss of jobs, which is what most influences delinquency.
The fall in the granting of mortgages moderates in Alicante in the month of April
However, Verónica Rodríguez also warns of the consequences that the loss of purchasing power may have on the part of these families and, above all, on the temptation to resort to new loans to maintain the standard of living or meet certain expenses, which can lead to an increase in household indebtedness, which can give rise to new problematic situations. Faced with this dilemma, Rodríguez recalls that it is always better to resort to “traditional” consumer loansbefore reaching for the credit card, which always has much higher interests.
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