These are the mortgages that will pay more in installments and those that will go down.

Euribor today it went up at 3.670% and complicates saving some of mortgaged who renew their mortgage in February. Specifically, those who signed up for a variable rate mortgage with an annual review. The only good news for everyone is that They won’t have to face a big raise. fees – some noticed an increase of 600 euros per month in 2023 -. The average Euribor rate this February is around 3.6%, still a far cry from 3.53% a year ago. The ones who will reduce the fee and be the first to do so are the ones who do the semi-annual review. The figures came on the same day the government explained the timing and requirements for accessing new ICO guarantees to buy a home.

How much will my mortgage increase in February?

In terms of how much more or less the bank’s clients will have to pay, those who have annual report A typical 30-year mortgage with Euribor plus 0.99% will face an increase in payments of about 84 euros per year, if we are talking about an average mortgage of 150,000 euros -7 euros per month-. The reduction will be noticed by those who renew their subscription every six months.

Under the same mortgage conditions as the previous one, the discount is about 45 euros per month, just over 500 euros per year. If mortgage 300,000 euros In this case, the reduction will reach 87 euros per month, which is more than 1000 euros per year. In case of an annual check, you will have to pay 14 euros more per month, 168 euros per year. According to the Bank of Spain, a noticeable overall decline will occur in March.

What is Euribor?

Euribor (in English – interbank offered rate in euros) is type of interest unsecured market links for different maturities (one week, one, three, six and twelve months). Euribor is calculated by EMMI. This institution defines Euribor as “the interest rate at which credit institutions from countries that are (or were formerly) members of the European Union and the European Free Trade Association can finance themselves in the wholesale market without guarantees.”

When will the ECB cut rates?

He ECBThe custodian of the euro, raised rates by 450 basis points during a hike that began in July 2022, although markets are now betting the ECB will cut its benchmark rate, which could happen this summer, analysts say. draw conclusions from recent statements Christine Lagarde.

Increased a year ago to 600 euros per month.

Year 2021 was one of the best years to get a mortgage: Euribor recorded its historical minimum values ​​(-0.505 in January and -0.502% in December of the same year), and mortgage firms in Spain recorded previously unseen figures: up to 418,058 transactions during the year, an increase of 23.7% in 2020. This is evidenced by data from the National Institute of Statistics (INE). And while it looked like 2022 would follow a similar path, the war between Russia and Ukraine that began in February of that year saw the Euribor rate and inflation in the eurozone begin to rise significantly, marking a turning point. in the sector. After a year in which the cost of letters rose to €600, the changes are now moving away from these figures.

So much so that the benchmark index for variable mortgages recorded positive values ​​again in April 2022. (0.013%), having spent more than six years in the red. This affected all those with adjustable rate mortgages, who had to review their mortgage payments upward from now on. The increase was initially between €30 and €60 per month, but the Euribor rate continued to rise until the end of 2022 by 3.018%, causing mortgage holders who renegotiated their mortgage in December to see their monthly payments rise. 600 euros every month.

And that was not all. IN In 2023, the Euribor rate continued to growreaching its highest peak in 15 years with 4,160% in October of the same year, 4,662 percentage points higher than the figure recorded in December 2021. Thus, explains mortgage comparator director and iAhorro consultant Simone Colombelli: “Those who took out a variable mortgage when the Euribor rate was negative suffered the most from the rise in this rate, as they saw their monthly payment almost double in just two years due to the increased interest they pay on the loan.” bank.”

What will happen to Euribor in 2024?

The Euribor index ended 2023, confirming the downward trend, so in this 2024 we are already seeing first quota reduction in variable mortgage with overview once every two years. For example, who signed a mortgage in January 2021 with a semi-annual review 150,000 euros over 30 years with a difference of Euribor + 0.99%, you have already experienced in January of this year (the month in which Euribor closed at 3.609%) a reduction in your quota of 47.87 euros per month compared to 787.16 euros per month that it paid 739.29 euros now.

However, to see this reduction in mortgages from annual report We will still have to wait a little longer, although perhaps not too long. “If in February this year the Euribor rate falls by even one tenth compared to January, we could already see a reduction in mortgage payments at the annual review this month. But ultimately it should be lower than the 3.534% level that the indicator recorded at the end of February 2023,” says an iAhorro representative.

For example, if The Euribor rate ends in February 2024. averaging around 3.558%, those who signed a mortgage in February 2021 with an annual review will still see their payment increase by €1.93. True, this increase no longer represents a big change for mortgages, but it delays the reduction in installments until at least February 2025. However, if it ends, for example, at 3.5%, mortgages will already experience a drop of 2.72 euros in commission, to 736.91 euros.

When will mortgage rates go down, according to experts?

Of course, Simone Colombelli assures that “this will not happen before after summer when we see a significant reduction in payments on variable rate mortgages with annual review, because we do not expect Euribor to fall significantly until then.” Of course, this depends on whether the European Central Bank (ECB) cuts official interest rates (currently at 4.5%), as its president Christine Lagarde recently said. If this happens, adds the mortgage director of comparator and mortgage consultant iAhorro, “ Mortgages that must undergo an annual review their fees, starting in June or July, they will already see their monthly payments drop by more than double digits.”