The ECB’s interest rate cuts are unlikely to reduce prices and installment plans for mortgage loans.

Current and future mortgage holders welcomed the decision European Central Bank (ECB) lower interest rates quarter point believing that this reduction would mean a significant drop in interest mortgage, but this will not happen, analysts warn. His impact on quotas will be moderate those who pay off their mortgage, especially in the first months, and will hardly be noticed V new mortgages sign because, despite the reduction in interest rates, the price of money is still very high – 4.25%.

For those considering taking out a mortgage, the changes the ECB’s decision could cause are “very minor, if any at all,” he says. Simone Colombelli, director of Hipotecas iAhorro. It’s because banks anticipated this movement supervisor and several months ago lowered interest rates on its mortgages. Thus, “We don’t expect to see a general decline in offers, just some specific offers from those furthest behind.

“,” Colombelli points out.

Is of the same opinion Francesc QuintanaTreasurer of the Association of Real Estate Agents of Catalonia and CEO of Vivendex: “Slightly lower interest rates were already expected by banks, so the ECB cut has an impact relatively low for both new and existing mortgages“

mortgage war what banks have said in recent months has led to 15 enterprises will adjust their prices downward. When fixed mortgage His interest dropped to about 3% and at best it falls to 2.7%This means that banks lend much cheaper than the official interest rate set by the ECB.

“You can easily get a fixed mortgage at rates below 3% with few connections,” he says. Mikel Riera, HelpMyCash mortgage analyst. Something similar happens with a mixed mortgage, because the bank began to reduce the fixed interest rate corresponding to the first years of the term.

A similar effect will have a reduction in interest rates on already concluded mortgage loans. semi-annual or annual fees will not be significantly reduced because the Euribor at 12 For several months he expected a rate cut, which led to a two-month fall and cheaper mortgage loans.

The index used by banks to calculate interest on variable mortgages in Spain closed at 3.68% which means a monthly decline of 0.65% and a 4.74% year-over-year decline. This led to reduction of commissions

mortgage loans reviewed in June, approx. 190 euros per year average.

“The rate cut is likely to have limited impact on consumers as the 12-month Euribor rate is already discount for this falleven more,” points out Juan Villen, CEO of Idealista Mortgages.

For all these reasons, the impact of falling interest rates on payments to current mortgage holders will be significant. slow and progressiveAnalysts predict and rule out that Euribor will reach the low levels it noted before the interest rate hike, especially if inflation It is still between 2 and 3%, the same level as now in the eurozone, after rising two tenths in May to 2.6%.

Experts believe that Euribor will remain stable and will not decline significantly until there is a consistent reduction in interest rates by the custodian of the euro. This is what he admits Pedro del Pozofrom Mutualidad, in his opinion, Euribor “will show the consequences of the ECB’s normalization when there are consistent rate cuts.”

He explains that the index has already clearly reflected market expectations of ECB rate cuts today, so “it should not have a significant impact on mortgage terms for small consumers.”

In this scenario, Mikel Riera gives a little hope to the mortgaged and points out that it is quite possible that Euribor decline until the end of the year between 3.25% and 3.5%. Analysts believe the drop is due to the fact that the European Bank’s Governing Council will continue to cut interest rates until the end of the year if inflation falls.

They wait between two and three more descents, which could end the year with the price of money at 3.75%. In this case, current and future mortgage holders will see both installment and new mortgages become cheaper, which Simone Colombelli believes will make 2025 will be a “good year to get a mortgage.”