HOMEOWNERS in Spain will save some money this year now that the Eurozone interest rate, the Euribor, has fallen yet again.
Over the course of 2015, the rate which affects savings and loans in countries which use the comon currency has plummeted by a record 80%.
As at the last day of December, the Euribor stood at 0.059%, having started 2015 at 0.323%.
This means a typical Spanish homeowner who has a €120,000 mortgage over a 20-year term with a standard 'Euribor +1%' rate would see a reduction in monthly payments of €14.63, or a total of €175.56 per year.
For 2016, the future of the Euribor continues to be uncertain since it is linked to European Central Bank (BCE) monetary policy, partly based upon crude oil prices.
Analyst for XTB, Jaime Díez, says oil prices could carry on 'falling as sharply as it has in the last two years' – which will be great news for mortgage-holders or those with loans, but not so positive for those who rely upon savings interest for their income.
But other experts say it seems unlikely that monetary policy in the Union will be based upon even greater interest rate falls.
XTB believes 'rock bottom' for the Euribor could be around 0.04%, and may reach it in the first quarter of 2016, but could start to climb later in the year.
The plummeting Euribor, which reached record highs of over 5% at the end of 2007, is aimed at making it easier for individuals and companies to seek credit in order to improve the flow of money within the Eurozone economy.