Interest rate swap index in Spain
The Interest Rate Swap (IRS) is an official alternative to the Euribor mortgage reference index published for the first time in October by the Bank of Spain.
This official IRS index at five years published by the Bank of Spain finally opens the market to new financial instruments as a benchmark interest rate on new loans. This index rate is considered more transparent and steady than others like Euribor or IRPH because the IRS reflects the average fluctuation of the interbank interest rates over the past five year, which has been traditionally slightly above Euribor.
The experts do not consider that IRS will come into the mortgage market in a massive way due to the fact that there are still higher rates. So far, no bank has released any mortgage offer referenced to this new index, however it is important that we get familiar with the term.