The average mortgage will become more expensive 200 euros per month if the rates rise again at the end of the year

The offer expired on April 29. That was the deadline that the bank gave Alberto Pinillos (fictitious name) to decide if his and his couple accepted the offer they made to sign the mortgage on their new house. As of that day, the offer of 1% interest at a fixed rate rose by 0.25 percentage points. The reason? «The Euribor was already rising strongly. In the end we met the deadline, but even so they ended up raising us 0.15 points", explains Pinillos. This is the viacrucis suffered by the mortgaged, whether at a fixed or variable rate. Banks are trying to penalize fixed-rate loans and boost variable rates in the face of the Euribor escalation. The index, to which 80% of mortgage loans in Spain are referenced, started the year in negative. Just in the month of April, when Alberto signed his mortgage, he entered positive in the daily rate for the first time in six years. And just four months later, it closed the month of August at 1.249%. An abrupt rise that has become a headache for thousands of Spanish families and that will not stop, at least, until the end of this year. The daily figure, in fact, has exceeded 2% this week and the monthly average for September is already over 1.9%. It is the most immediate reaction to the announcement that the European Central Bank (ECB) is preparing new rate hikes for the coming months after increasing the price of money by 0.5 points in July and an additional 0.75 points this past Thursday; the latter a historic rise since the euro was created. Related News standard No The ECB undertakes a historic rise in interest rates of 0.75 points to curb inflation Rosalía Sánchez The institution follows the rate of increases of the American Federal Reserve and the price of money is now at 1.25 % Analysts' forecasts are now that the index will close the year at around 2.25%, but the truth is that in recent months the estimates have been overwhelmed by the abrupt increases in the index. Financial sources point out that making forecasts at this time is almost a matter of faith as no one knows where the index's escalation will stop. For now, if the ECB continues to raise rates, the Euribor will continue to rise. Likewise, it should be noted that the mortgage index, if it closed at 2% in September, would mean exceeding the historical average of the Euribor, which stands at 1.8% throughout its history over more than two decades. The stage of cheap mortgages is coming to an end. Mortgages 200 euros more expensive All this is having direct consequences for families. Since it plunged into lows in December 2021, it has not stopped rising and the trend scares all mortgage holders. There are already eight months of rise and it is noticeable -and it will be noticeable in the future as well- in the quotas. According to calculations by the Helpmycash portal, the average mortgage will become even more expensive than 200 euros per month. The comparator takes as a reference a home loan of 150,000 euros at 25 years with Euribor interest plus a spread of 1%. Whoever has to check with the data for August (1,249%), will go from paying 532 euros per month for that average mortgage to 654 euros; Taking as a forecast that the index will reach 2% in September, the revision taking that month as a reference would cause it to go from paying 532 euros to 654 euros per month; and anticipating that the Euribor will end in December at 2.5%, the fee would go from 532 euros to 711 euros. Desktop code Image for mobile, amp and app Mobile code AMP code 2140 APP code A scenario that scares variable-rate mortgagees. It is, or rather was, the case of Juan Antonio Marco, a family man who bought a house with his partner five years ago. They obtained an interest of Euribor plus 0.95% of differential; They convinced them that the index was going to be under a decade. “We have been paying these years between 0.3-0.6%, as the Euribor is negative. Now my partner had been telling me for a year that we had to change our mortgage, to fixed mortgages that were very cheap », he says. They let that possibility pass and continued to variable rate... until they decided to act. They saw a few months ago how everything was going to change and that their fee, with the review that would be done, was going to increase by 400 euros per month. "In June I started calling banks to ask," he says. Marco asked in the banks to abandon the variable rate and go to fixed. He first spoke with Santander, which offered him a rate of 1.27%, but that offer did not last and they raised it to 2.6%. Then they went to Unicaja. «They told me that they offered me 1.05%. We had to do it, and it took us a month and a half to sign the new mortgage; we quickly changed to the fixed rate so that the offer would not escape us », he recounts. The fear of the path that the Euribor is taking forced this user to make a creditor subrogation (change the bank loan and change conditions), but there are still many who resist the variable rate. «In May we saw that everything changed and that our quota was going to increase by 400 euros. In June I started calling banks to change to a fixed rate» Juan Antonio Marco Variable mortgage «We complied with the term of the offer they gave us but they ended up raising the interest rate» Alberto Pinillos (fictitious name) Fixed mortgage «I asked for fixed-rate offers and they always offered me a variable rate. You ask for what you want and they tell you 'this is what you get'» Cristina Álvarez Fixed Mortgage «More than 4 million Spaniards have taken out a mortgage, so the rise in the Euribor is having a tremendous impact on a social level. We calculate that for each point that the Euribor rises, the mortgage payment grows by 100 euros”, highlights the CEO of the Trioteca mortgage manager, Ricard Garriga. The manager recalls that in June the rate was still below 1%, so the increases in recent weeks "are being very abrupt." Garriga, however, recalls that in 2011 the reference index was already at 2%, and in 2008 it reached 5%. "The rise is having a lot of impact because it has occurred very abruptly, but the truth is that the Euribor still remains at relatively low levels." Dodge the variable rate Consumers are trying to dodge the blow by choosing fixed-rate mortgages... despite the obstacles of the bank. This is the case of Cristina Álvarez, a 33-year-old woman who signed a mortgage loan in July. «I asked for offers at a fixed rate and they always offered me variable. They do not give you facilities; you ask for what you want and they answer 'this is what there is'. They do not give you room to fight the interest rate even if you contribute high payrolls ». She managed to sign her mortgage as fixed as she wanted, but she discovered first-hand the voracity of entities to always offer variable -except Caixabank-. MORE INFORMATION news No One in ten loans is already signed at a mixed interest rate news No The Euribor drowns families: mortgages become more expensive at the highest rate since 2000 news No The Euribor closes August at its highest level since May 2012 at 1.25% The outlook, in short, is not good and the iAhorro experts make a point: «Never in its historical series had the Euribor grown so quickly. Between January and September, we had never seen this power. And it's not going to stay there." Bad times to have a mortgage.

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