The amount of mortgages rose in March. .
The Euribor has done it again. After the months of February (-0.501%), March (-0.487%) and April (-0.484%) maintained its rebound at the end of May with an increase to -0.48%. “The rise of the Euribor has been enough constant, but practically pointless. At the macroeconomic level we can witness a recovery in various sectors, even if hardly we will see this year move the indicator at levels above -0.3%”, Highlights Simone Colombelli, Mortgage Director at iAhorro.
At the same time, a recovery in the mortgage sector with a year-on-year increase of 35.1% in the mortgage signing during the month of March, according to the latest data from the National Institute of Statistics.
For its part, the amount of mortgages also rose in March to stand at 137,729 euros and mortgage loans constituted at a fixed rate (53.6%) maintain their prevalence compared to variables (46.4%).
When will variable mortgage payments start to increase?
Despite the increases of the last four months, the Euribor is still in negative territory, which has allowed the majority of people who had their mortgage referenced to this index to have continued to benefit from significant discounts in their fees.
“For now the mortgaged can rest easy, predictably a summer and practically a last quarter of the year with sales”, Points out Simone Colombelli.
The consensus of the mortgage market does not foresee that the Euribor will leave the red numbers in the coming years, so everything seems to indicate that new buyers will be able to continue taking advantage of the movements of the index for a while and taking advantage of the low interest rates they offer variable mortgages right now.
However, the fixed mortgage has been the great favored by the Euribor. The trend in the last year of the mortgage index has pushed banks to make their fixed rate offer more attractive in search of getting some profitability from this product. Consequently, the interests that today can be found in the market with this modality are very little different from those that can be obtained with a variable mortgage.
“People used to opt more for a variable loan because it was the best option that banks offered them or because the interests were lower. Now that the differential between the variable and fixed rate is minimal, It is much more beneficial for everyone to opt for a stable installment, ”says iAhorro’s Mortgage Director.
Discounts of up to 603.72 euros in the mortgage payment
How much will citizens who have to review their mortgage this month save? If we take out the installment calculator and compare the Euribor data for May last year (-0.081%) with the current one (-0.48%), those who have the revision of their variable mortgage of 150,000 euros at 30 years and Euribor + 0.99% at this time will save 25.15 euros per month Y 301.8 euros for the next year. So they will go from paying 476.09 euros to 450.94 euros per month.
On the other hand, those who had a variable mortgage of 300,000 euros at 30 years with Euribor + 0.99% will see their quota fall from 952.18 euros to 901.87 euros. The annual savings in this case it will be 603.72 euros and 50.31 euros per month.