THE fall of the Euribor to its third historic low last month means the average mortgage-holder will save more than 300 euros a month.

With the Eurozone interest rate now at 1.644 per cent, homeowners with a variable rate loan will see savings of between 1,800 and 3,900 euros a year.

Last year, home loans in Madrid and the Balearic Islands were the highest in the country.

The average mortgage is 185,000 and 175,000 euros respectively, which have fallen by 329 and 311 euros per month based upon a 25-year term.

In the Comunidad Valenciana, the average homeowner – based upon a mortgage of 124,000 euros – will save 220 euros a month, with Murcia residents saving 205 euros based on a 115,000-euro loan and those in Andalucía, 232 euros per month, assuming an average mortgage of 131,000 euros.

Smaller savings are seen in Extremadura, Ceuta and Melilla, where the average mortgage is between 85,400 and 86,200 euros, with monthly payments falling by an average of 152 euros.