A summary of the Latest Euribor and Spanish mortgage news
Euribor (12 months), the interest rate generally used to calculate mortgage repayments in Spain, rose to 2.086 in April, a change of +8.4pc compared to the previous month, and the first time Euribor has been above 2pc since February 2009.
On an annualised basis, Euribor is 70.3pc higher than it was a year ago (see graph above), meaning higher monthly repayments for borrowers with mortgages resetting now.
Repayments for a typical mortgage (150,000 Euros, 25 years, Euribor +0.25) will go up by around 64 Euros /month, or 775 Euros / year. That will punish many a stretched household budget in Spain.
Where will rates go from here? Upwards, most likely. The following chart from Idealisa.com, a property portal, plots interest rates over the last 20 years. As you can see, we are in a period of exceptionally low interest rates (that are probably incubating the next crisis).