Mortgage misery goes on with new Euribor rise

20th March 2006, Comments 0 comments

20 March 2006, MADRID — Mortgage rates were set to go up again after the Euribor rose to 3.1 percent for the first time since November 2002.

20 March 2006

MADRID — Mortgage rates were set to go up again after the Euribor rose to 3.1 percent for the first time since November 2002.

Euribor, which is the principle reference for mortgage rates in Spain, has continued its steady rise since the middle of last year.

On Monday it reached 3.134 - or 0.039 points more than last week - which makes it one point higher than last summer when it reached 2.1.

For the first time since 2002, Euribor has broken the 3 percent barrier, rising higher than predictions from the Central European Bank, which said it would reach 2.5 percent.

Experts believe the Euribor will continue to rise until the end of this year, possibly ending 2006 on between 3.5 and 4 percent.

Euribor is the reference point used by the banks in the eurozone to fix mortgages on a monthly basis.

This means, for an average mortgage of EUR 120,000 taken out over 20 years, the rise predicted for the Euribor this year, will add an extra EUR 55 on top of monthly payments, bringing them from EUR 625 to EUR 680.

[Copyright EFE with Expatica]

Subject: Spanish news

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