Interest rates will continue to rise. The President of the European Central Bank (ECB), Christine Lagarde announced in September, after two increases (one of 0.75 and the other 0.5 points), that they would continue to rise. At the end of October, a third increase, again of 0.75, was confirmed. According to some experts, these increases will mean an increase of up to 200 euros in the monthly bills of average variable rates. They will also increase for those who want to formalize now a fixed rate mortgage. In these cases it is estimated that those who ask for 170,000 euros for 28 years, the monthly payments will go from 585 to 754 euros.
Euribor rise in mortgages and loans
A year ago the Euribor was at an all-time low of -0.505%. This November it has reached 2.846, more than 3 points higher. According to data from the Bank of Spain, the average interest rate on new mortgages has risen from 1.38% at the end of last year to 2.03% in August, while that of consumer loans has risen from 6.1% to 7.09%.
How much are payments rising per month?
A report prepared by the web portal Idealista, someone who took out a €170,000 fixed-term mortgage at the beginning of 2022, would be paying €585. Now, someone who requests that same amount, will pay between 750 and 1,000 euros.
The number of people who cannot apply for a mortgage is on the rise.
The same study carried out by Idealista shows the number of families who, since the rise in rates, cannot access a mortgage at 12€. That is, Spaniards who had the capacity to access the purchase market and that with the increase in interest rates will no longer be able to do so.