View Full Version : Finance What is the difference in the Euirbor rate?

13-12-2012, 17:58
Can one of you guys explain the what the difference in the Euribor rate is, against last December.
Thanks in advance.

13-12-2012, 21:54
Not an Estate agent but it has gone down about 1.5% since last year. A waiting the change in my mortgage

14-12-2012, 01:36
The Euribor is a generic term for the floating base rate which is used in conjunction with a "margin" to determine many overall mortgage rates in Spain.
The most common rate used is the "Euribor 12 month"

In December 2011, the 12 month Euribor stood at 2.03%
At the beginning of December 2012, the 12 month Euribor was 0.57%
A drop of 1.46% year on year.

A 100,000€ mortgage at a rate of Euribor + 2.0% would have been 523€ per month last year, dropping to 452€ this year.
Thatīs if your mortgage rate renewal date fell in December.

The Euribor is currently at its lowest level ever and in response banks have increased their margins and added "collars" to their mortgage products.
So a bank may offer Euribor + 1.5% (2.07%) but they will have a minimum rate of say 3.0%.

The downside of margin increases is more pronounced for non residents with some banks now offering rates of Euribor + 4%. An overall rate of 4.57% may not be too shocking today but considering that Euribor rates peaked at around 4.9% in 2008, a margin of 4% would mean an overall rate of 8.9% if the Euribor returned to that level in the future.

In the example used earlier, the repayments on a 100,000€ mortgage would rise to 832€ per month.

14-12-2012, 12:55
Thanks guys......as ever the forum always has someone to help.