The mortgage payment to the bank will increase in July in contracts indexed to Euribor rates that are revised in that month, aggravating 262 euros within 12 monthsaccording to the simulation of Deco/Dinheiro&Direitos.
A customer with a 30-year loan of € 150,000 indexed to the six-month Euribor and with a ‘spread’ (the bank’s profit margin) of 1%, start paying from July 789.27 euroswhich translates to a increase of 110.67 euros compared to the last revision in January.
Already in the case of a borrow under the same conditions (amount and amortization period), but indexed to the three-month Euribor, the customer now pays 763.24 euros, 54.79 euros more than what he paid since April.
These values were calculated taking into account the Euribor averages in the month of June, namely 3.825% for six months and 3.536% for three months.
As for 12-month Euribor-indexed loans, the mortgage payment – for the above conditions – increased to EUR 805.87 in July, an increase of EUR 262.48 per month.
In this case, this value was calculated taking into account the Euribor average in June, which was 4.007% over 12 months.
The evolution of Euribor interest rates is closely related to increases or decreases in ECB interest rates.
After several years in negative territory, the Euribor started to rise more sharply since February 4, after the European Central Bank (ECB) admitted that it may raise key interest rates due to the rise in inflation in the Eurozone.
Since then, the ECB has already raised its base rate several times, which means an increase in the amount customers pay for loans, primarily for home loans. A further hike in ECB interest rates is expected in July.
Source: DN
