July 6th, 2009

Euribor (12 months), the interest rate normally used to calculate mortgage payments in Spain, fell to an all time record low of 1.61% in June, down from the previous record low of 1.644% in May. This will bring relief to borrowers on annually resetting mortgages.

On a daily basis Euribor finished the month at 1.504%, another all time low, suggesting that Euribor’s downward trend has not yet run out of steam.

After the latest fall, Euribor is now 70% below where it was in June 2008. That means savings of around 3,400 euros per year for the average borrower with a mortgage resetting now.

A year ago the average mortgage value was 141,939 euros, according to the National Institute of Statistics (INE). With Euribor then at 5.361%, 3.75 points higher than today, monthly repayments on the average 25-year mortgage were around 860 euros. Today the repayments should have fallen to around 575 euros, a saving of 284 euros a month, or 3,400 euros a year.

Related posts:

1. Euribor Falls to New Low of 1.644 Percent
2. Euribor Falls Again To New Low
3. Euribor Falls For 12th Consecutive Month
4. Euribor Falls to New Record Low
5. Euribor at Second Lowest Level on Record

Tags: Euribor

This entry was posted on Monday, July 6th, 2009 at 14:57 and is filed under Financial & Mortgages. You can follow any responses to this entry through the RSS 2.0 feed.

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