The 12-month Eurbor: An Update on the Indicator That Affects Mortgage Holder Fees

Euribor On the Rise: Annual Mortgage Rates Set to Increase

The 12-month Eurbor, the most widely used indicator in Spain to calculate variable mortgages, is expected to close March with a slight increase of around 3.72%. This means that mortgage holders who review their loans annually will see a small increase in their fees, while those who review semi-annually will experience some relief.

The Eurbor has been on the rise, standing at an average rate of 3.72% in March, compared to 3.671% in February and 3.647% a year ago. Despite initial expectations of a significant drop in the Eurbor due to potential rate cuts by central banks, the indicator has remained relatively stable. Experts predict that the Eurbor may continue to fluctuate around 3.7% in the short term, with small rises and falls. In the longer term, there may be a significant decrease starting from June, potentially ending up in the range of 3% to 3.5% by the end of 2024.

For mortgage holders who review their loans annually, this means their fees will become more expensive. However, for those who review their payments semi-annually, there will be some relief. The Eurbor is at its highest level since November, indicating some stability and potential for a slight downward trend in the coming months. Analysts attribute the recent increases in the Eurbor to the tough stance of the European Central Bank and uncertainties in the geopolitical field.

In conclusion, while annual reviews may lead to increased fees for mortgage holders, semi-annual reviews could provide some relief during times of uncertainty about interest rates and geopolitical events that affect them.

Accordingly, mortgage holders need to be aware of how frequently they are reviewing their loans and how it affects their fees accordingly. While fluctuations in interest rates can impact borrowing costs significantly over time

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