Mortgage holders can breathe a sigh of relief as the Euribor, a reference index used to calculate variable mortgages, closed above 3.68% in May after a three-month decline that began in February. Although there was a slight decrease, it is not yet enough to significantly impact mortgage holders. However, there is hope on the horizon as the European Central Bank is expected to lower interest rates on June 6, which could lead to a decrease in mortgage rates.
Most variable rate mortgages are reviewed annually, and the Euribor has remained at similar levels over the past year. This means that many mortgage holders will see little change in their monthly payments. However, platforms like iAhorro estimate a savings of around 15-30 euros per month for mortgages of varying amounts.
While this may provide some relief for mortgage holders, it’s important to explore all available options to maximize savings and potentially lower monthly payments. ASUFIN predicts that the Euribor will continue to decline in the coming months, potentially reaching 3% by the end of the year. This could result in annual savings of around 450 euros for every 100,000 euros of mortgage. They also suggest exploring alternative options such as fixed-rate or mixed mortgages, which may offer lower interest rates.
In conclusion, while there are small signs of relief for mortgage holders with the Euribor closing above 3.68%, it’s crucial to keep an eye on interest rates and explore all available options to maximize savings and potentially lower monthly payments.
