Grupo Vapf

Upward trend of the euribor interest rate

The details provided by the Spanish National Statistics Institute INE (Instituto Nacional de Estadística), set the Euribor, the main spanish mortgage index, at 1.373% July 2010, with a monthly rate which for the fourth consecutive month has undergone an upward shift. The Euribor closed July 2009 at 1.412% so this figure still allows mortgage holders who will have their mortgage reviewed this month a reduction of their monthly repayments, that represents a saving of 36 Euros per year, if we take as an example an average mortgage of 120.000 Euros at 20 years, representing 2 or 3 euros per month.

Santos González, president of the Spanish Mortgage Association, Asociación Hipotecaria Española (AHE), highlights that this last detail of the Euribor clearly states a change of trend, predicting continued increases in the coming months, closing 2010 with the Euribor sitting at 1.5%. According to other experts, the indicator will undertake a more pronounced increase as from now until reaching over 1.44%, next October, however, it can also mitigate its upward trend by the improving risk premiums. Nevertheless, we will wait for the official details provided by  the Instituto Nacional de Estadística.