The Euribor rises again to 1.4% in the daily rate and confirms that the August average will close above 1%
The unions see the escalation of the Euribor as their next battlehorse in the demands to maintain household purchasing power against the impact of runaway inflation of 10.8% in July. The general secretary of the PP, Pepe Álvarez, urged the government on Wednesday to create “a line of credit” or some kind of fund so that households can pay their mortgage, at a time when the Euribor has been activated by anticipating a new one. rise in interest rates by the European Central Bank (ECB) of another 50 basis points in September.
The most widely used indicator in variable mortgages in Spain remains practically untreatable, with another rebound placing this Wednesday at 1.427% in daily rate. With only five business sessions to go until the end of the month, all indications are that August will be the first since June 2012 to finish above 1%. At that time, the monthly average was 1.219%.
At the moment the average is already around 1.146% and if it closes like this, the mortgages that are reviewed annually will experience a significant cost increase. With an average mortgage of 150,000 euros at 30 years variable interest, with a spread of Euribor plus 99 basis points, the monthly increase would be slightly more than 110 euros. That is about 1,300 euros per year.
“The rise in the Euribor will have dramatic consequences for many families who have taken out a mortgage,” explained Álvarez during a meeting with the media in Malaga. He believes that government support would solve two problems for them: that of those who can meet their financial responsibilities and therefore that of the bank, which, he said, could “be able to handle their solvency better”.
“It is a subject that has been little talked about, but which is going to make life even more complicated from an economic point of view,” he emphasized. For this reason, he has assured that the UGT will do everything in its power to go to the next meetings with the central government with the idea of achieving “a kind of commitment, a kind of support for families who can’t pay their mortgage”.
Source: La Verdad
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