How much will you save on a mortgage with the Euribor rate at its February low? A little more than 30 euros per month

It’s not yet time to loosen your belt to breathe a little easier. Euribor, the benchmark index used to calculate variable mortgages, closed above 3.68% in May. (in the absence of today’s data), and this comes after three months of decline that led to the lows of last February, although this is still not enough to make a difference in the pockets of those with mortgages.

He Background curtain for this containment we will have to look for it in the calendar June 6, when all indications are that the European Central Bank (ECB) will make its first interest rate cut This new phase, which began two summers ago and has brought official rates in the eurozone to an all-time high of 4.5%, is the main refinancing rate that banks look at when setting refinancing rates. price their loans. Thus, rates are expected to be 4.25% by the time of this meeting.

But How will the fall in the Euribor rate affect Spanish mortgage holders? The reality is that the comparison is not very flattering, as you have to take into account that the vast majority of adjustable rate mortgages are renegotiated once a year. Where was Euribor just twelve months ago? At levels that are almost identical. The index closed at 3.68% in May 2023. This means that for the second year in a row, families whose quotas are reviewed in July (this comes with a two-month delay) will have to commit to another twelve months of fees as high as those they have been paying since last summer.

Calculations used by platforms such as iAhorro, timid savings of around €15 per month for mortgages of €150,000 and around €30 per month for those taking on a €300,000 debt to their bank. In annual terms, the savings will range from 180 to 360 euros.

ASUFIN (Association of Financial Services Users) estimates that “the decline in Euribor will continue at the same pace in the coming months until it reaches 3% at the end of the year, which would mean a larger decline,” which they estimate at around 450 euros per year for every 100 000 euro mortgage.

Another option they suggest to avoid accepting these costs is to look for alternatives, such as changing the entity or modality. “You can find fixed rate mortgages below 3% TIN, mixed mortgages with TIN around 2% and variable mortgages which, despite citing a very high Euribor, have corresponding initial interest rates (for the first six or twelve months , depending on the bank). very low, about 1% TIN, and spreads can even be about 0.5%,” experts say.