The mortgages do not get cheaper despite the continued descents of the Euribor
21.01.2009
The continued descent of the index Euribor, principal modality of the mortgages, has not transformed in a decrease of the interest rate of the mortgage loans, but everything opposite.
The differential that the banking institutions are applying with regard to the type of reference has got longer, which chewing gum, up to such a point that in the last months has reached his maximum since the Euribor exists: 2,438 points. The differential is the benefit that the banks take for the interests of a mortgage, normally Euribor + Differential.
In spite of the continuous falls of the Euribor we meet the unpleasant surprise of which the average type of the granted mortgages the banking institutions was fixed in 5,891 % last month, according to numbers of the Mortgage Association.
Although a reduction is appreciated with regard to November, the descent was only 0,367 points, therefore the differential with regard to the Euribor expanded up to 2,438 mentioned points. This difference is the highest since the Euribor was created in 1999 and it is necessary to go back to April, 1996 to find a major difference. Then, the average mortgage was in 10,045 % and the Mibor (predecessor of the Euribor), in 7,585 %.
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