EuriborAt the end of the month, the Euribor for January is expected to close at 1.84%, 16 hundredths less than its value in December when it was 2.00%, which is the biggest drop since July 2009. In contrast, the indicator used in Spain for calculating mortgages has risen 29 / 100 compared to the same month last year, so mortgages loans to the person on the ground will also increase accordingly.

In 2011, the Euribor in January closed at 1.55%, 29 / 100 below the level that it will close at the end of this month. This means that a mortgage of € 200,000 over 24 years will increase by 4% or 32 Euros extra per month or 384 Euros per year. In the case that the same mortgage is over 39 years, the increase will be 6% or 36 Euros per month or 420 Euros per year.

During the month of January 2012, the Euribor started at 1.937% and continued to fall on a daily basis, which marks the lowest interest rates by the European Central Bank (ECB) by a quarter percentage point to 1 25%. Obviously the Euribor will continue to fluctuate as it is directly linked to the currency market concerns on whether the price of money will increase or decrease.

Click here if you are searching for Barcelona property and luxury real estate in Spain.

© 2015 HomeSearch Barcelona. All Rights Reserved.