The Euribor continues to decline after, in just over two years, hitting its ceiling. The year 2021 was one of the best to get a mortgage: the Euribor registered its historical minimum values (-0.505 in January and -0.502% in December of that year) and mortgage firms in Spain registered figures never seen before, up to 418,058 operations throughout the year, 23.7% more than in 2020, according to data provided by the National Institute of Statistics (INE). And, although it seemed that 2022 was going to follow the same path, the war between Russia and Ukraine, which began in February of that year, caused the Euribor and inflation in the eurozone to begin to rise significantly, marking a turning point. later in the sector.
Pay 600 euros more per month in fee
So much so that the reference index of mortgage variables registered positive values again in April 2022 (0.013%), after spending more than six years in negative values. This affected all those with variable rate mortgages who had to review their mortgage payment upwards from that moment on. These increases were initially between 30 and 60 euros per month, but the Euribor continued to rise until the end of 2022 at 3.018%, which caused mortgage holders who reviewed their mortgage in December to see their monthly payment rise. in some cases, up to 600 euros each month.
And that was not all. In 2023 THE SIGUILAI EURIBOR rises, reaching its highest peak of 15,160% in October of that year, a figure that placed up to 4,662 PURCENTUAL POINTS AT THE TOP OF THE REGISTERED IN DECEMBER 2021. Therefore, explains the Mortgage Director of the comparator and iAhorro mortgage advisor, Simone Colombelli, “those who took out a variable mortgage when the Euribor was negative have been the most affected by the rise in this indicator, since they have seen how their monthly payment has almost doubled in just two years due to the increase in the interest they pay to the bank.”
What will happen to the Euroíbor in 2024?
The Euribor ended 2023 confirming its downward trend, so this year 2024 we are already seeing the first fee reductions in variable mortgages with semiannual review. For example, who signed a mortgage in January 2021 with a semi-annual review of 150,000 euros for 30 years with a Euribor + 0.99% differential, will have already experienced this in January of this year (month in which the Euribor closed at 3.609%). a drop of 47.87 euros per month in your fee, from the 787.16 euros per month you paid to 739.29 euros now.
When will my mortgage be lowered if I have an annual review?
However, to see these reductions in mortgages with annual review we will still have to wait a little, although perhaps not too long. “If the Euribor falls, even by one tenth, this February compared to the January figure, we could already see lower installments on mortgages with annual review this month. But it would have to end up below the 3.534% that the indicator registered at the end of February 2023,” says the iAhorro spokesperson.
Does the Euribor in February lower mortgages?
For example, if the Euribor ends this month of February 2024 as it is today (3.558% on average), whoever signed a mortgage in February 2021 with an annual review will still see their fee increase by 1.93 euros . It is true that this increase no longer represents a big change for the mortgaged, but it will delay the reduction in installments at least until February 2025. However, if it ends, for example, at 3.5%, the mortgaged would already experience a drop of 2.72 euros in your quota, up to 736.91 euros.
When will mortgages go down according to experts
Of course, Simone Colombelli assures that “it will not be until after the summer when we will see substantial decreases in the installments of variable rate mortgagees with annual review because we do not expect the Euribor to drop noticeably until then.” Of course, this depends on the European Central Bank (ECB) then lowering official interest rates (they are now at 4.5%), as its president, Christine Lagarde, recently announced. If this happens, adds the Mortgage Director of the iAhorro mortgage comparator and advisor, “mortgagors who have to do the annual review of their installment starting in June or July will already see drops of more than double digits in their monthly installments.”