The EURIBOR interest rate is now at record low levels. This means opportunities to get very low interest payments on your mortgage.
At the end of February the interest rate landed on the minus side. On the last day of February the interest rate was on -0.008%. This is the lowest monthly level since the indicator was introduced after the transition from pesetas to Euro in 1999. The policy rate is the basis for calculating mortgage for most Spanish banks. Low interest rates will lead to cheaper loans for anyone who does not have a fixed interest rate, something that very few clients in Spain have.
Simultaneously with the decrease in Euribor, more mortgages are being granted than ever in Spain. According to figures from the Spanish statistical office INE, 19.8% more mortgages were granted last year compared with 2014. The terms of loans from Spanish banks are considered to be vital for the increased demand that the property market in Spain has experienced during the last two years.
According to the Spanish news agency Europa Press, an average Spanish mortgage will be around € 170 cheaper per year with the new interest rates.
Facts about Euribor
Euribor, or the Euro Interbank Offered Rate is a daily reference rate is calculated as an average of the rates that banks in EU countries charge each other for loans in euros. EURIBOR is used as a benchmark for setting interest rates, and more. A rate may for example be expressed as EURIBOR 3M + 1%, and will then follow 3M EURIBOR rate plus one percentage point. The EURIBOR is being published every weekday, at 11 am CET.
EURIBOR is available with different maturities, for example one week, three months and 12 months.