Mortgage misery as Euribor increases again

28th February 2006, Comments 0 comments

28 February 2006, MADRID — Euribor, the indicator used to calculate mortgages, has risen to 2.914 percent in February – the highest point since 2002.

28 February 2006

MADRID — Euribor, the indicator used to calculate mortgages, has risen to 2.914 percent in February – the highest point since 2002.

The increase, which still has to be confirmed by the Bank of Spain in March, will mean monthly mortgages will rise again.

It is the fifth monthly increase in a row but may not be the last, experts said.

It is thought Euribor may reach 3.5 percent by the end of the year.

This means an average EUR 120,000 mortgage taken out over a 20-year period with a differential of 0.60 points on top of the Euribor will go up from EUR 660 to EUR 696 each month.

On a yearly basis, the same mortgage would rise by EUR 432.

Analysts say the increase in the Euribor could be explained by the rate anticipating the gradual rise in interest rates after a hike by the European Bank of 0.25 in December to 2.25 percent.  

They also say interest rates could rise throughout the Eurozone.

[Copyright EFE with Expatica]

Subject: Spanish news

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