The Euribor closes November with a decline and the average mortgage lowers 62 euros per year

Published on November 29th 2017

The fall to 0.19% represents a new historical minimum for the indicator that is most used to calculate the mortgage share.

The one-year Euribor - the most widely used indicator in Spain to calculate the mortgage share - will end November with a new decline that will bring it down to -0.190%, which represents a new historical minimum and translates into a average saving of more than 62 euros per year. In the absence of four business sessions for the end of the month and can calculate the exact data, which the Bank of Spain will confirm in the coming days, November will be the twenty-second consecutive month that this indicator remains in negative territory. During the eighteen working days that the month has so far had, the Euribor has ranged between the maximum of -0.186 this Friday and the low of -0.192 registered on November 15.

The estimated saving of about 62 euros per year for those who have a mortgage is due to a year ago, in November 2016, the indicator stood at -0.074%, bringing an average mortgage of 100,000 euros then hired at 25 years with a differential of one point on the Euribor would have a monthly cost of 373.53 euros. However, if a mortgage with these conditions is reviewed using the current data, the cost would be 368.33 euros per month, that is, 5.2 euros less per month or 62.4 euros per year.

Since March 2016 the evolution of the indicator depends on the increases or decreases in rates approved by the European Central Bank (ECB), which has been unchanged since March 2016 from the historical low of 0% and, as announced last month, thinks keep them "a long period" to support the recovery of the euro area.

Over a year and a half ago, in February 2016, the Euribor closed for the first time in its history a month with a negative sign and since then it has continued to evolve downwards. Given this unprecedented fact, in Spain a debate was opened about whether banks would end up paying clients for mortgages, something that several entities rushed to clarify that will never happen, because the Euribor always adds a differential that each bank decides.

In Spain, the lowest differential to which a mortgage has been sold in general has been 0.17 percentage points, on the part of Deutsche Bank, so since last month the one-year Euribor has sunk enough for , once the differential is applied, the interests are negative.

 

Source: 20 Minutos