Mortgage rates 'the highest in three years'

31st January 2006, Comments 0 comments

31 January 2006, MADRID – Mortgage rates in Spain seem to be hitting their highest level in the last three years, it was reported on Tuesday.

31 January 2006

MADRID – Mortgage rates in Spain seem to be hitting their highest level in the last three years, it was reported on Tuesday.

The most-used indicator of mortgage rates in Spain is the Euribor index, which this month recorded a rate of 2.833 percent – an increase of half a point in 12 months.

The rise, which remains to be confirmed by the Bank of Spain next month, would mean the average mortgage with an annual review in the next few months could go up by EUR 31.

Those with a mortgage of EUR 120,000 over 20 years will see a monthly payment rise of EUR 30.58, those with the same mortgage spread over 25 years would pay EUR 31.62 more.

The total annual bill would creep up by EUR 372.

Experts also predicted rates could even top 3 percent during this year, with some even predicting 3.5 percent.

[Copyright EFE with Expatica]

Subject: Spanish news

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