Euribor falls to 1.61pc in June

Euribor (12 months), the interest rate normally used to calculate mortgage payments in Spain, fell to an all time record low of 1.61% in June, down from the previous record low of 1.64% in May. This will bring relief to borrowers on annually resetting mortgages.

On a daily basis Euribor finished the month at 1.504%, another all time low, suggesting that Euribor’s downward trend has not yet run out of steam.

After the latest fall, Euribor is now 70% below where it was in June 2008. That means savings of around 3,400 Euros per year for the average borrower with a mortgage resetting now.

A year ago the average mortgage value was 141,939 Euros, according to the National Institute of Statistics (INE). With Euribor then at 5.361%, 3.75 points higher than today, monthly repayments on the average 25-year mortgage were around 860 Euros. Today the repayments should have fallen to around 575 Euros, a saving of 284 Euros a month, or 3,400 Euros a year.


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