These are mortgage payments that will pay less in February.

He Today the Euribor rate is decreasing again up to 3.640%. This information is already good news for mortgaged who will have to update their mortgage per month February because they won’t have to deal with much magnification -some in 2023 noticed an increase of 600 euros per month- but they are seeing the possibility of cuts receding, or at least being distanced, for the vast majority whose mortgages are locked into a variable rate with an annual review. Those who renew their subscription every six months will be lucky because they will notice the drop. If you have a mortgage of 150,000 euros, the discount is 48 euros per month. According to the Bank of Spain, a noticeable drop will occur in March.

These are the first mortgages to go down

Thus, if the same variable mortgage of €150,000, concluded in January 2021 for 30 years with Euribor + differential of 0.99%, had a semi-annual review, then at the review in that month the premium would fall by €47.87 or, in other words, for the same amount. the mortgagee will pay this year is 574.48 euros less than last year. Likewise, if the mortgage capital were €300,000, under the same conditions the reduction would be greater: €95.75 each month and up to €1,148.96 over the course of a year.

Why will my mortgage go up in February?

Against, Mortgage banks will review their loans annually They will continue to see their quotas rise, as a year ago, in February 2023, Euribor was 3.53%. The February average for these first eight days is currently 3.606%.

When will the ECB cut rates?

The ECB, the “guardian of the euro”, raised rates by 450 basis points during the hike cycle that began in July 2022, although markets are now betting that the E.C.B. reduce the base ratewhich could happen this summer, according to analysts’ conclusions from Christine Lagarde’s latest statements.

When will the Euribor rate fall? Here’s what the experts say

Mortgage director of comparator iAhorro, Simone Colombelliexplained that the Euribor continues to decline, but is softening its decline following the sharp decline recorded at the end of 2023 and the stabilization of interest rates by the European Central Bank (ECB).

Likewise, a mortgage analyst at financial comparator HelpMyCash.com, Michael RieraHe explained that the slight decline in Euribor in January contrasts with the sharp decline that occurred in December, when, in his view, “the market became overly optimistic” about expectations of central bank rate cuts.” He now added, “forecasts have been brought into line with reality : There is no date planned for rate cuts.”

In December 2023, Riera explains, the market predicted a short-term ECB rate cut and Euribor experienced a rapid decline. However ECB recently assured that they do not have any timetable for cutting rates, since this decision will depend on GDP data and the evolution of inflation in the eurozone.

The forecast of comparator experts is that in the first quarter of 2024, Euribor will decline slightly and close at a level close to 3.5%. Therefore, the first APR variable mortgages to fall in price will likely be those that are updated to reflect the index’s March value (it was pegged at 3.647% for 2023).

But in most optimistic scenarioThey clarified that the Euribor rate, revised taking into account the February rate, may become cheaper (in 2023 it was trading at 3.534%). Likewise, the Bank of Spain, in a report on the financial position of households and companies published this Wednesday, indicated that, starting in March and in line with current market expectations, annual reviews of mortgages linked to Euribor are expected to become lower. that is, families will see their monthly payment reduced.

General Director of RN Your Mortgage Solution, Ricardo Gulias, also highlighted that the mortgage situation in Spain continues to improve at the start of what could be a pivotal year for the property sector. Thus, Euribor, which has stabilized at 3.6% after peaking at 4.16% in October, is estimated to fall further and end the year at around 2%. However, he warned that the stability of mortgage terms was currently threatened by the military situation in the Red Sea.

Changing your mortgage this year is free

In the last week of 2023, the Government approved measures to mitigate the effects of inflation, one of the central points of which was mortgages. This revealed one of the most noticeable changes: an increase in the income threshold to qualify for measures Code of Best Practice. The new figure is €38,000 per year, a significant increase from the previous €29,500. In addition, early repayment fees for adjustable rate mortgages will continue to be waived throughout this year. Free subrogation of variable mortgages to fixed mortgages was also extended, and the option to convert to a mixed mortgage was added.

Is it the right time to subrogate your mortgage?

With 2024 starting with so much optimism in the banking industry, iAhorro Comparator Mortgage Director Simone Colombelli assures that “This will also be a good time for surrogacy

because financial institutions are making their mortgage offerings cheaper, both at blended and fixed rates.” So, since the data recorded each month on average by Euribor is still higher than the interest rate offered by banks on fixed or mixed mortgages, those with adjustable rate mortgages “can still get a nice reduction your monthly payments.” they are changing their loan to a fixed-rate loan or a mixed-rate loan,” he adds.

It is true that Euribor is not usually higher than the interest rates on fixed mortgages. But, concludes the comparator’s mortgage director, “at iAhorro we recorded an average fixed interest rate of 3.03% in December, a figure that is significantly lower than the Euribor for that month (3.679%), and even people with very good economic and labor income profile signed a fixed mortgage at 2.5% NIR in the last month of 2023.”