The Euríbor closes at 5.38% and average mortgage goes up by nearly 60 euros a month
The Euríbor interest rate has gone up once again. For the month of September it is set to close at 5.38% which is six hundredths more than last month. The Euribor interest rate which is used for the majority of mortgages in Spain went down slightly in August, however this appears to be just a blip and it now looks set to continue rising. Those people who have to review their mortgages will see it rise by about 59 euros for every 150,000 euros of credit (the average mortgage in Spain is the Euríbor plus 0.5% over 25 years). This works out at around 709 euros more per year.
The Euríbor is now close to its historic high in July when it reached 5.393% and is far from the rate for September 2007 which was 4.72%. The Spanish government has asked the European Central Bank to review official interest rates which have been frozen at 4.25% (compared to 2% in the US) in order to try to put a brake on further rises in the Euríbor.
Further interest rate rises are expected to affect the number of people unable to pay their monthly mortgages which has risen from 0.50% to 1.30% in a year according to the Spanish Mortgage Association.
Related: Mortgages in Spain