Euribor just keeps plumbing new depths
Euribor (12 months), the interest rate most often used to calculate mortgage repayments in Spain, fell to 0.618pc in October, the lowest level on record, and 71pc lower than October last year.
Until as recently as July, Euribor had never fallen below 1pc. Now it seems to be in freefall, heading for 0.5pc. It’s rate of fall has accelerated in the last 3 months, and analysts expect it to continue falling in the next few months.
All of which is good news for hard-pressed Spanish borrowers. As a consequence of the latest fall in Euribor, interest payments on a 25-year, €120,000 mortgage at Euribor +1pc will fall by about €1,000/year.