Grupo Vapf

Posts Tagged ‘interest rate’

Euribor interest rate

Euribor -the rate indicator that is linked to more than 4 million mortgages in Spain- goes down to 2.067 % by 30  September 30, 2011, but is still higher than September 2010 in 0.647 points.

This fact negatively affects the mortgages as it increases the monthly payment. If we take in consideration an average 20 years mortgage of 120.000 Euros with annual review in September, it will be affected with an increase in the monthly fee in about 37.29 Euros, equivalent to an annual increase of 447.48 Euros.

Read the rest of this entry »

the Euribor trend has changed from August 2010

The Euribor rate –main Spanish mortgages reference index- closes October 1,495%. This is a slight increase compared to the rate in September 2010, which was 1.420%. This information has been issued by Banco de Espana, the National Spanish Bank.

While mortgages recalculated with Euribor rates from January to July 2010 saw their monthly instalments reduced, mortgages revised with Euribor rates from August to October will see their monthly payments increased.

Read the rest of this entry »

One of the many financial products available is the swap interest rate

During the past years there have been many new mortgage products and not always the clients and the banking institutions totally understand the benefits and losses of these new products, for this reason a judge has just stopped, for the first time in Spain, the execution of a SWAP.

For those that are not up to date with all these terms, SWAP is a financial exchange of interest rates, a complex financial product thought for companies and self-employed people, to seal an agreement between the parties, where the loans will be referenced to a fixed rate for a prescribed period, regardless of external changes.

Read the rest of this entry »

The mortgage reference rate increases again in June

The Euribor interest rate, which is used as reference for most mortgages in Spain, ended the month of June 2010 at 1.281%, which make these three consecutive months on the rise and marks its highest value since August 2009 when it stood at 1.334%. Analysts say it will continue to increase its value slightly.

The reason for predicting the increase of the Euribor rate is the uncertainty in the interbank market, which has not improved even after the European Central Bank guaranteed liquidity or the Spanish Treasury auctions closed successfully.

Read the rest of this entry »

How to choose the right mortgage

The mortgage loan is a financial operation which allows you to access the purchase of a property, raising higher funds, leaving the property mortgaged as security for payment of the operation. It is formalized in a public document and the rights are constituted through registration in the Land Registry.

Before formalizing the loan with a financial institution it is very important to compare several products with similar characteristics:

• Interest rate: fixed, variable, mixed or flat fee.

Read the rest of this entry »