The Euribor continues its climb and reaches 1.4% in its daily rate: This is how it affects your mortgage – Onda Cero

The Euribor continues its climb and has reached 1.4% in its daily rate this Wednesday, which is its highest level since the end of March 2012. Six consecutive rises The reference index for most variable-rate mortgage loans in Spain has chained six consecutive rises, since last Wednesday it marked a level of 1.146% until today, when it stood at 1.427%. With these increases, the provisional monthly average for August would stand at 1.14%, its highest level since June 2012, when it closed at 1.219%. These increases in the Euribor are anticipating the increase in rates that the European Central Bank (ECB) could apply at its next meeting in September. The market is discounting an increase of 50 basis points, after surprising in its July meeting with a first increase of 0.5%. How does it affect your mortgage? The rise in Euribor affects those mortgaged who have contracted a variable rate loan. This type of mortgage is linked to the Euribor, so if this index rises, the rate increases and more is paid in the mortgage payment. If the Euribor goes down, you pay less. More economic news This rise in the index could mean a significant increase for those who have their quota revised. For example, for a variable mortgage of 150,000 euros over 30 years and with a spread of Euribor plus 99 basis points, the monthly increase would be just over 110 euros or, what is the same, 1,300 euros per year.