The 12-month euribor indicator, which is used to calculate mortgage repayments across the eurozone, fell to 3.126% yesterday- its lowest level since March 2006 - and is expected to close the year at 3.49%, well below the rate at the average monthly rate end of December 2007 (4.739%).

It is, above all, excellent news for those whose mortgage repayments are due for reassessment at the end of December: those paying back €150,000 euros over 25 years will save themselves €115 euros a month with their repayments falling from €902 to €787 while anyone with a €300,000 euro mortgage repayable over 30 years will save around €240 with their monthly quota dropping to €1,423 from €1,664.

The decline is mainly due to the action of the Central European Bank, which by cutting interest rates across the eurozone, is attempting to stimulate economic activity and calm the still jittery banking sector. As a consequence of the banks' unwillingness to lend to each other, the euribor soared to 5.39% last July with a maximum daily rate of 5.5%.