The Euribor Returns to July Levels as Interest Rates Rise

This is due, in part, to the rate hike carried out by the European Central Bank (BCE) last September 14. Everything indicated that the rates were going to remain as they were, but finally the organization opted for the increase to reach 4.5%, a figure that had not been recorded since 2001.

“He Euribor is being forced to follow in the wake of the interest rates officerswhich are already 35 basis points above,” says Simone Colombelli, mortgage director at iAhorro.

Nevertheless, the rise in the Euribor has not been very pronouncedsince remains between 4% and 4.15% that the indicator has been recording during the previous four months. This means that the Euribor will not exceed these values? “Once we exceed the 4.2% average, the next barrier that we will not take long to reach will be 4.5%. In fact, it is most likely that if the ECB does not touch official interest rates again in the next quarter, Let’s end the year with the Euribor around that 4.5%”, predicts the mortgage director of iAhorro.

Taking this information into account it seems that sign a mortgage variable is not the best idea, but it could be a product to consider for a person who look for short-term financing and that it can assume increases in fees.

Furthermore, as banks bet on this product The conditions they have are quite attractive.

An example of this is the variable mortgage of EVO. Its TIN is Euribor +0.48% (2.20% during the first two years) and its APR is 4.43%. All this as long as the payroll, unemployment benefit or pension of more than 600 euros is domiciled and home insurance is contracted.

For its part, the Freedom mortgage from Banco Mediolanum It is made up of a TIN of the Euribor +0.79% (0.99% during the first year) and an APR of 3.60%. The requirements that must be met to sign with these conditions are the following: open a bank account with the entity, direct deposit of recurring income equal to or greater than 3,000 euros and take out life insurance.

Nor should we forget about the variable mortgage of ING. It is made up of a TIN of the Euribor +0.59% (2.55% during the first year) and an APR of 5.15%. The links that will be necessary in this case are payroll direct debit, depositing more than 600 euros per month or having a minimum balance of 2,000 euros per day and taking out two insurance policies (life and home).

In addition, Open bank It has a variable mortgage with a TIN of Euribor +0.60% (1.60% during the first year) and an APR of 4.96%. However, to enjoy these conditions, numerous requirements will have to be met: direct debit of the payroll; contract electricity and gas with Repsol; use the Openbank credit card; acquire two insurance policies (life and home) and make contributions to investment funds or pension plans marketed by the entity.

If a user is comparing between different options they should also take into account the BBVA variable mortgage. Its TIN is Euribor +0.60% (1.99% during the first year) and its APR is 5.41% as long as the payroll is domiciled and two insurance policies are taken out (home insurance and loan repayment).