Euribor interest rate decreases
Good news for mortgage holders! The announcement of decreasing of the price of money approved by the European Central Bank (ECB) has caused a drop of 1.118% to Euribor mortgage index reference.
The 12-month Euribor -the main reference for most mortgages in Spain- has experienced a historic decline, following the press release of the European Central Bank (ECB) to lower the price of money at a record low of just 0.75%.
This has a positive impact for the mortgage and for those who are thinking of getting a bank loan for a house. The decline of 25 basis points in the official price of money results in a decrease to 1.118% in intraday rate, which means a decrease in the average Spanish mortgages in 380 € per year.
Potential buyers who are planning to invest in a property have to take in account the new indicator for mortgages: the IRS (Interest Rate Swap), an index reflecting the evolution of interest rates to five years calculated as an average of the market futures rates at that period. With this new rate the banks look for a more stable rate than the Euribor and better way to reflect the evolution of interest rates.