Search thinkSPAIN.com for  in 
spain jobs
backprinttell a friend

Spanish mortgages down again as Euribor hits minus figures for the first time ever
By:
thinkSPAIN , Sunday, February 28, 2016

EUROZONE interest rates have fallen into negative figures for the first time in history, bringing mortgages in Spain and other common currency nations down to their lowest ever.

The first time since the euro came into circulation that its interest rate, the Euribor, dropped below zero was on February 5 this year, when it plummeted to -0.002%, and it is expected to end the month on -0.007%.

Its lowest-ever was registered on February 22, when the Eurozone interest rate plunged to -0.018%.

Contrary to speculation, this does not mean those who have mortgages or loans will get money back, but it will mean the part of their repayment which represents capital interest will be as low as it will ever get.

For a typical mortgage of €120,000 over a 25-year term with a rate of Euribor + 1%, the monthly saving will be around €14, or €172 a year.

The Bank of Spain will confirm this officially in the first few days of March.

In light of this unprecedented situation, a debate began as to whether customers whose mortgages came up for annual review at a time when rates were in negative figures would be given refund.

But chairman of the Spanish Banking Association José María Roldán said paying people for borrowing money would be a 'contradiction in terms' and 'neither healthy nor sustainable'.

The Bank of Spain is considering applying a 'zero clause' to all new loans and mortgages which means the minimum Euribor interest rate will never go below 0%, meaning at the very least lenders would get a refund on the loans they had granted.

In practice, most loans and mortgages are based upon the Euribor plus a given percentage, ranging from 1% to 4% or 5%.

Lenders are also heavily pushing fixed-rate mortgages, which are not common in Spain as interest rate reviews are annual, meaning homeowners have plenty of time to follow trends in the economy and make decisions if a rate hike threatens – something they have not had to worry about in around eight years, as the Euribor has been consistently falling since its highs of around 5.3% in 2007.

At present and according to the National Institute of Statistics (INE), a total of 90.2% mortgages in Spain are on variable rates.

Last year, the number of new mortgages granted went up by 19.8%, reaching a total of 244,827 – the second year-on-year increase after six consecutive years of falling.

 

 

 
Print Share Article RSS News Feed
print tell a friend stumble it!  delicious  digg it!  facebook   rss feed View feed | Add to my RSS reader rss feed

Latest ThinkSpain News
Minor earthquake in Murcia causes panic in wake of Italian tragedy, but was barely felt
Crime/Incidents - (25/8/2016)
Spaniard injured in Burma earthquake
Crime/Incidents - (25/8/2016)
Spanish woman among the deceased in Italian earthquake: Death toll rises to 247
Crime/Incidents - (25/8/2016)
 
Latest Business/Economy articles
Banks in Spain adjust strategy post-Brexit referendum
Spain  - (20/8/2016)
Richest and poorest towns in Spain revealed
Spain  - (15/8/2016)
Mango to open second branch in Cuban capital
Spain  - (7/8/2016)
 
  back
Follow thinkSPAIN on
Facebook Twitter
 
 
 
Spanish news archive Costa Blanca news Costa del Sol news Alicante news Castellon Valencia news Barcelona news Catalonia Costa Brava news Madrid news Tenerife news Canary Islands Malaga news Marbella news Andalucia news Sevilla news Costa Almeria news Murcia news Costa Calida Aragon news Asturias news Balearic news Mallorca Menorca news Ibiza Basque news Bilbao Cantabria news Castilla La Mancha news Castilla Leon news Extremadura news Galicia news La Rioja news Navarra news Spanish Travel Tourism news Spanish Property Spain directory services Spanish A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Jobs in Spain Postcodes Spanish weather Spain History Spanish Culture Flamenco dancers Sevillanas Bullfighting bullfight bull fighting matador bullfighter Spanish Education Spain Schools Facts about Spain Clubs in Spain mortgages Spanish bank Spain banking Spanish banks Spain inheritance Spanish wills Spanish healthcare in Spain Working in Spain work Spanish employment Driving Spain cars Spanish car Spain Tax & Spanish Residency Property in Spain for Sale Spanish property to rent Spain holiday lets Spain news Spanish Properties SpainSave costa blanca 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 costa del sol 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 local news/info Spanish estate agents Off Plan property Spain | costa blanca property sales properties for sale real estate costa blanca villas | costa del sol property sales properties for sale real estate costa del sol villas | costa de la luz property sales properties for sale real estate costa de la luz villas | costa brava property sales properties for sale real estate costa brava villas | costa almeria property sales properties for sale real estate costa almeria villas | costa calida property sales properties for sale real estate costa calida villas | costa valencia property sales properties for sale real estate costa valencia villas | costa azahar property sales properties for sale real estate costa azahar villas | costa dorada property sales properties for sale real estate costa dorada villas | costa garraf property sales properties for sale real estate costa garraf villas | costa maresme property sales properties for sale real estate costa maresme villas | costa vasca property sales properties for sale real estate costa vasca villas | costa verde property sales properties for sale real estate costa verde villas | costa da morte property sales properties for sale real estate costa da morte villas
 
© 2003-2016 Think Web Content, S.L. - All rights reserved