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The Euribor is still cheaper Will you pay less mortgage if you have to review?

Posted by Michel B. on 22/10/2019

One more month, the Euribor closes again in negative. The main indicator of variable mortgages rises slightly this September when closing at -0.34% compared to the data recorded in August when it marked -0.356%, the lowest data in its history. Citizens who have to review their 12-month Euribor mortgage will notice an interesting reduction in their monthly payments.

Many analysts considered that this month the Euribor could hit bottom since in the first days its downward trend changed. However, the index seems to be called to break with all forecasts. “At the European Central Bank meeting on Thursday, September 5, a drop in rates was expected, but that was not what prompted the Euribor to rise,” said Simone Colombelli, Mortgage Director at

In this month of September, the Euribor registered -0.385% on September 3, however, it rose to -0.298% on September 20. The following days it stabilized a bit and remained in the trend since August: around -0.3%

How much is my mortgage cheaper?

Thus, for an average mortgage of 150,000 euros at 30 years, the mortgaged person paid 470 euros a year ago. With this new fall of the Euribor, its monthly payment will be 459.22 euros. A monthly reduction of 10.95 euros which in the whole of the year means 131.1 euros less mortgage. To make this calculation a differential of Euribor + 0.99% has been taken into account.

In the case of a loan of 300,000 euros for 30 years, the decrease in the indicator shows a little more. These mortgages paid up to now a fee of 940.30 euros, with the revision of the Euribor they will pay 918.42 euros, which means a monthly saving of 21.87 euros or 262.44 euros in the whole of the year. To make this calculation, a Euribor + 0.99% differential has been taken into account.

With a negative Euribor, fixed or variable mortgage?

Spaniards are increasingly betting on fixed mortgages versus variables, if we take into account the latest data from the National Statistics Institute for the month of June, the number of fixed mortgages already accounts for 44.5% of total signed loans . This is the highest percentage of the historical series. It should be noted that the data for June 2018 was 37.1% fixed compared to 62.9% variables and two years ago mortgages were distributed between 34.9% fixed and 65.1% variables.

“Security is the main value of fixed mortgages. Now it has also added its attractive prices. Currently, the average fixed rate is 3%, just three years ago it was 3.5 and four 4% ago. This reduction in fixed interest rates coincides with the fall of the Euribor, first to zero and then to negative ground ”

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