“The rise of Euribor and its impact on mortgage stress in Spanish households”

Mortgages have become one of the problemss that are generating the most difficulties in Spanish homes. In a difficult economic context, in which inflation and the increase in the price of energy It has made life much more expensive in just a few months, and in the midst of coming out of a recession derived from external problems such as the pandemic, the Euribor could not be left behind at this party and generates significant pressure.

Many already know the Euribor because it was an important protagonist during the 2008 crisiswhen the real estate industry went bankrupt, generating a debt gap that will haunt future generations and that pushed many families out of their homes. Now, mortgages are again a key point in the recession economy due to the record increase in Euribor which currently stands at 3.84%.

The Autonomous Communities that suffer the most from the rise in mortgages

with a fee of Higher Euribor, mortgages also involve a higher outlay for family units, which are already under pressure from the higher cost of life. Although in the case of mortgage pressure, this is more noticeable in some autonomous communities than in others. This is how he reveals it a recent study generated by the Pepper Advantages platform, an international company that specializes in risk management and debt recovery.

In your evaluation of the Spanish map, you could see that some communities such as Andalusia, Asturias, Extremadura, Murcia and Castilla-La Mancha, suffered greater mortgage stress, while others, such as the Balearic Islands or the Basque Country, barely felt it. To reach these conclusions, the platform analyzed the ability to maintain mortgage payments of the families, as well as the returned receipts, as well as the renegotiations, understanding both as symptoms of economic difficulties.

In this sense, the study ensures that the rejection of invoices for direct debit mortgages suffered an increase of 7.85% on average in the country during 2022. As the European Central Bank began to raise interest rates, the impact generated an exponential rise in the rejection of these payments. In the communities mentioned with plus mortgage stress, these rejections rose from 8.5 to 10.2%.

Renegotiate so as not to perish

When the economic problems sink their roots into other aspects such as a precarious job, or the lack of it, or inflation, invoice rejections are timed. In fact, the study showed a close relationship in these communities with unemployment and mortgage difficulties.

This makes many households have to renegotiate their mortgages to be able to deal with receipts. According to this study, these renegotiations have tripled so far this yearreaching the formalization of operations with a value of 595 million euros, according to data from the Bank of Spain, compared to the 180 million euros that were renegotiated in the same period of 2022.