Inflation, triggered by the impact of the war in Ukraine, also affects the Euribor and, therefore, mortgage payments
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this month of april the Euribor has returned to positive rates after six years. All those who have a mortgage know that this is the reference index to calculate mortgage payments at a variable rate, and that if it is positive it will mean paying more. It should be remembered that mortgage payments are reviewed annually or quarterly.
Inflation – triggered by the impact that the war in Ukraine is having after the Russian invasion – also affects the Euribor and, therefore, mortgage payments. If inflation does not decline in the coming months, it seems more than certain that interest rates will have to rise.
for now, How will the Euribor rise in April affect your mortgage? For an average mortgage of 150,000 euros with a term of 25 years and an interest rate of Euribor plus a differential of 1%, taking -0.02% as an estimated monthly average, the installment will go from 533 euros per month to 564 euros per month . This translates into an increase of 368 euros per year in mortgage payments, according to calculations by the financial portal HelpMyCash.
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