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HomeLatest NewsTension returns to credit and debt: the Euribor rises to 3.93%, its...

Tension returns to credit and debt: the Euribor rises to 3.93%, its March ceiling

Date: March 29, 2024 Time: 18:28:49

The Euribor, the reference index for most variable-rate mortgages in Spain, has experienced a significant increase this Wednesday, reaching its highest level since before the banking crisis in mid-March.

The daily rate of the 12-month Euribor has risen today to 3.932%, marking the fourth highest record so far this year and returns to levels similar to those observed during the 2008 financial crisis, although it has not yet reached the maximum records rados at the beginning of March, when it reached 3.978%.

In March, the benchmark mortgage index experienced a sharp drop to 3,322% as a result of the change in expectations regarding the interest rate policy of the European Central Bank (ECB) due to the financial turmoil caused by the collapse of several medium-sized banks in the US and Credit Suisse in Europe.

With these data, the average Euribor so far in May stands at 3.834%. If this rate is maintained, the differential with respect to last year would be 3.54 points, compared to the 3.74 points registered in April. These changes will have a direct impact on homeowners with variable mortgages.

For example, a person with a 30-year mortgage of 150,000 euros and a bank differential of 1% plus the Euribor, who must review their interest rate in May, will see an increase in their mortgage payment of approximately 285 euros per month. This means that you would go from paying around 500 euros to almost 790 euros, which means an additional annual outlay of more than 3,420 euros.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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