The Euribor, the interest rate most commonly used to calculate mortgage payments in Spain, rose to 5.361% in June, 0.113 points above its previous all-time high.
This figure, which has yet to be confirmed by the Banco de España, means that mortgages that are adjusted annually, or every six months, will become more expensive.
Monthly mortgage payments on a typical 141,422 euros, 25-year mortgage which has an interest rate of 0.50% above the Euribor, and which is adjusted in June, will rise by 72 euros.
In light of the above, consumers will welcome any way of coping with rising interest rates. These measures include:
. Fixed interest rate. This type of rate, which is not very common in Spain, guarantees that monthly mortgage payments remain stable. This is an attractive option when there is a trend for higher interest rates, but not if this trend is forecast to continue for only one or two years.
The fixed rate mortgages currently offered by banks and savings banks stand at 6.5%.
. Mortgage extension. This is another way to ensure that mortgage payments do not rise substantially.
This option does not involve any additional costs provided that it complies with the bank's requirements.
In fact, 350 Spanish households have extended their mortgage term at no extra cost.
. Changing mortgage. As a result of changes which came into force a few months ago, consumers are now free to change their mortgage provider.
The Spanish government also reduced the costs of this operation, and established a maximum commission of 0.5% of the capital to be repaid, or to be assumed. Mortgage holders are free to look for more attractive mortgage loans offered by other financial entities.
. Get advice. Mortgage holders are advised to assess their financial situat ion before deciding on any of the options discussed above, in order to decide which option is to their best advantage.
Professional Mortgage Services in Murcia
This figure, which has yet to be confirmed by the Banco de España, means that mortgages that are adjusted annually, or every six months, will become more expensive.
Monthly mortgage payments on a typical 141,422 euros, 25-year mortgage which has an interest rate of 0.50% above the Euribor, and which is adjusted in June, will rise by 72 euros.
In light of the above, consumers will welcome any way of coping with rising interest rates. These measures include:
. Fixed interest rate. This type of rate, which is not very common in Spain, guarantees that monthly mortgage payments remain stable. This is an attractive option when there is a trend for higher interest rates, but not if this trend is forecast to continue for only one or two years.
The fixed rate mortgages currently offered by banks and savings banks stand at 6.5%.
. Mortgage extension. This is another way to ensure that mortgage payments do not rise substantially.
This option does not involve any additional costs provided that it complies with the bank's requirements.
In fact, 350 Spanish households have extended their mortgage term at no extra cost.
. Changing mortgage. As a result of changes which came into force a few months ago, consumers are now free to change their mortgage provider.
The Spanish government also reduced the costs of this operation, and established a maximum commission of 0.5% of the capital to be repaid, or to be assumed. Mortgage holders are free to look for more attractive mortgage loans offered by other financial entities.
. Get advice. Mortgage holders are advised to assess their financial situat ion before deciding on any of the options discussed above, in order to decide which option is to their best advantage.
Professional Mortgage Services in Murcia
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