Tuesday, July 5

The Euribor registers its second lowest figure in history in December

In the middle of the month, everything suggested that we would be facing another historic low of the Euribor. But, finally, it has not been like that. The most used indicator in Spain to calculate the quota of variable mortgages this December stands at -0.502%, just three thousandths above the record achieved in January of this year: -0.505%.

Although one day reach never-before-seen data, such as -0.518% on December 20During the last few days the Euribor has been experiencing a slight rise that prevents the December data from being the lowest in the entire series. Beyond these small ups and downs, which have not been too significant, we could say, as the director of Mortgages of iAhorro, Simone Colombelli, bluntly assures that 2021 it has been “the most stable year of the last five”. Thus, since the first negative data in history was recorded in February 2016 (-0.008%), “the trend has been a continuous downward trend”, Adds the expert.

Compared to December 2020, the evolution of the indicator has not been striking either, since December of last year ended with -0.496%. Thus, those who have a variable rate mortgage will still notice a small reduction in their installments, even if it is minimal.

  • If the total mortgage loan is 150,000 euros at 30 years with Euribor + 0.99%, in December of last year 535.45 euros of installment were paid and now they will pay 535.04 euros. The saving is 0.41 euros per month, which is equivalent to 4.92 euros per year.

  • If it amounts to 300,000 euros, also at 30 years and with a Euribor differential + 0.99%, they will pay 1,070.07 euros this month, while in December 2020 they paid 1,070.90 euros. In this case, the monthly saving is 0.83 euros and the annual one is 9.96 euros.

Regarding the Euribor forecast for next year, stability could continue to be the dominant note. Christine Lagarde, president of the European Central Bank, has reiterated on several occasions that “it is still quite unlikely” that the institution will raise interest rates in 2022. Therefore, Colombelli does not expect “a big rise in the Euribor in the coming months, at least not in the first semester of 2022 ”and if later there were a change in monetary policy, he says,“ it would not be radical, but gradual ”.

Everything seems to indicate that in 2022 we will continue with this trend of stability“, Adds the director of Mortgages of iAhorro, so he even dares to predict that next year the Euribor will remain negative, that we will not see peaks and that, in addition, its figures” will oscillate in a maximum range of two tenths “, between -0.3 and -0.5%.

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The biggest changes could be found in the products. On the one hand, it may be the year in which the young product picks up again because “in 2021 we have seen a lot of publicity and very little movement in this regard,” says Colombelli, adding that these movements “could come in the coming months” .

We must also focus on the ICO loans granted due to the pandemic, which, according to the iAhorro expert, are “the great uncertainty of 2022: if they are not extended beyond June 30, this could lead to a rise of bad debts and, therefore, a worsening of the conditions of the banks ”. However, Simone Colombelli is optimistic: “It will surely be a positive 2022, both in terms of prices and products”.

Reference-www.elperiodico.com

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