It is one of the main concerns of the Spanish: What will happen to my mortgage with the Euribor rise? Those who have their mortgage loan at a variable rate and referenced to the Euribor plus a differential, will already notice the rise and will do so in a remarkable way.
In just six months, this reference indicator to set the price of mortgages in Spain is rising and it does not only affect variable-rate mortgages, since it is triggering the price of fixed-rate mortgages. In just a month and a half we have gone from finding fixed-rate mortgages at 1% for certain circumstances, to having to consider getting 2% a win.
But the current rise in the Euribor (daily Euribor at +0.48%), is already making variable-rate mortgages (30% of home loans in Spain) more expensive (and much more expensive). Jose Maria Rotellarbreaks down in Libre Mercado different examples of different variable-rate mortgages and how much the indicator is currently making the mortgage payment more expensive.
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