The euribor becomes doubtful for a few days
24.02.2009
The evolution of the euribor, principal index to which there are indexed most of mortgage loans of the country, looks alike, every day more, to a suspense movie. After getting accustomed to his descents, up to 91 consecutive ones, in the last three meetings it has not managed to support his tendency. Today it has continued with his decrease, up to 2,062 %, approaching a little more to the long-awaited one 2 %.
The small fright that met on Thursday on a light upturn, the new fall that took place on Friday and the technical tie that happened yesterday they have passed to a new descent in the daily change of the euribor to twelve months. The indicator of reference to the calculation of the mortgages went down today up to 2,062 %, from 2,074 %.
The euribor, this way, gives one more step towards the reference of 2 %, the level in which the interest rates are fixed, at least until the next March 5, when the European central Bank updates his monetary policy. In principle, the financial analysts wait for a clipping of the types of half percentage point, up to 1,5 %, what would leave margin for new descents on the interbank markets.
The shutdown in the descents in the last meetings will not avoid a significant descent of the euribor in February. For lack of three days for his closing, the medium month's characteristic is located in 2,152 %, from 2,157 % of yesterday. In the same month of last year the average duplicated this percentage, on having reached 4,349 %.
Except unexpected modifications in the next three meetings, the index euribor to twelve months will finish the medium month's characteristic about 2,1 %. This amount will suppose a reduction of approximately 170 euros of average a month or of more than 2.000 euros a year for the persons who check his mortgage loans with the February reference.
The Euribor continues with his downward gust after the Thursday increase
21.02.2009
The small fright that gave on Thursday was only a mirage. The Euribor, index to which most of mortgages are indexed, I return to his downward footpath that comes manteriendo during more than four months and that suddenly I alter the previous Thursday after suffering a light increase of two thousandth, up to 2,085 % from 2,083 % that it marked on Wednesday day.
In the last weekly meeting, the type most used for the calculao of the mortgage loans in Spain descended again up to concentrating on 2,074 % in his daily quotation. Thus for lack of five meetings to finish the month, the February average is located in 2,163 %, what it places to the Euribor in levels next to July, 2005, when it closed in 2,168 %.
Nevertheless, this average is more than two points lower than the registered one in the same month of last year (4,349 %), therefore the quotas of the mortgage loans that are checked in the next weeks will register a descent matter for yourself.
With the current monthly reference of the Euribor, a mortgage comes up of 150.000 euros to 25 years with annual review and a differential of 0,50 points on the Euribor might get cheaper in nearly 200 euros a month, what would suppose a saving for 2.400 euros in the whole annuity. If the review is every six months, the monthly quota would go down up to 260 euros and more than 1.500 euros to the semester.
The analistasfinancieros augur that the Euribor will keep on descending in the next months, cheered up partly, for the possible descent of the interest rates that the European Central Bank (BCE) might decide in his meeting of March.
The cause of the increase registered Thursday assumed to an increase of the suspicion on the interbank market, after the reduction of the credit qualification of Spain and the opening of records on the part of Brussels for his high deficit, which can get dearer and make difficult moreover the financing of the entities.
Barclays, mortgage to Euríbor +0,35 % with up to 3.000 euros of expenses of substitution
19.02.2009
Barclays throws this aggressive mortgage offer to the market, a mortgage with Euríbor +0,35 % for new clients originated from other entities with up to 3.000 expenses euros to carry the change of entity out
Although the offer of the mortgage loan cannot turn out to be yet reflected on the web page of Barclays there are númerosos the means of cominicación that have done echo of this news to themselves.
The credit mortgage named ‘Cambio de Banco Mortgages’ it has been created for those families that have a mortgage in another entity and want to improve monthly quota of the mortgage with the best conditions of the market
The new mortgage loan can be hired by means of the cancellation or the substitution of the mortgage that the client has in another banking institution and the later opening of the piece of news in Barclays.
In hiring the mortgage, those interested clients will be able to do it without opening commission and, also, Barclays will assume the expenses - notary's office, record and agency - that could be generated up to 3.000 euros. Which is an innovation and I think that he is going to cheer undecided many people to incline up for this mortgage.
As requisite, the previous mortgage must have a minimal antiquity of six months and the maximum term for his hiring is 35 years.
Caught by valuations superior to 5 % in the mortgage
16.02.2009
Those who had no luck of checking the mortgage between September and January meet valuations superior to 5 %, which will not see descending up to the next review with his bank. If a mortgage is chosen with the Euribor at price of market and a profitable differential, it is possible to reduce of 3 % the interests.
The families that checked the quotas of his mortgage loans between September, 2008 and January remain caught by high interest rates, and an Euribor that saw lowering his valuations of 5,40 % reached after the summer to 2,622 %, official fact of January. The question is that not difruta of the "reductions". As option to solve the problem can be waited up to the next review or to replace with the mortgage. With this measurement it is possible to save up to 3.132 euros per year, which after paying the expenses of the substitution to another banking institution, a clear saving would obtain in the exercise of approximately 1.582 euros. If the term reaches 30 years, in this period the piled up saving would reach 10.080 euros.
For example for a mortgage in which they stay for paying 150.000 euros, with 30 years of term, in that the bank or box receives a differential of 0,70 %. If it was checked at the end of year, the applied entire interest overcomes in many cases 5,2 %, what takes the monthly quota to 890 euros. It shocks this valuation, since in formalized loans this month there might be obtained interests that would fall down almost to the half.
Nevertheless, if we attend on a type of market that today can be achieved in some entities (lightly below 3 %, included differential), we will see to fall down, and very much, the quota. In the office of an entity that the distinguishing minor of the market receives from us, the monthly fertilizer might go on to 630 euros, 259 less than in the loan that there burdens 0,70 % the Euribor, what would take the saving in the cost in the first year after the substitution to 3.132 euros.
Route: CorreoGallego
Caixa Catalunya will transform into rents 350 mortgage loans
12.02.2009
The entity Caixa Catalunya will reform 350 mortgage loans in rents like measurement so that his clients could support his housing thanks to a sustainable quota. The box started the help in October for, to facilitate financially the life, to his clients with complications, due to his economic situation. recently he has informed about the number of clients that they have been competed for for some of the options to refinance credits.
A whole de6.000 families have decided in favor of some of the helps anticrises proposed by the entity. Of the realized offer, it pays powerfully the attention, the number of families that have had to transform his mortgage into a rent to be able to keep on having his housing: 144 hearths have taken refuge in this measurement, but in entire sound 350, if there join those who are in steps to modify his relation with Caixa Catalunya.
“It is a question of families or persons who have will to pay, but that for personal circumstances, like a divorce or to have remained in unemployment they cannot do it”, mentioned sources of the box. The change of status has allowed them to reduce the monthly quota in approximately 400 euros. “For the mortgage they were paying approximately 1.000 euros and for the rent they pay approximately 600 out ″.
Largely it is a question of mortgages hired between the year 2005 and 2006, when the real estate market was in his moment summit. On having been quite recent mortgage loans, practically it had not had time to amortize the capital, alone be of interest. In the cases in which yes capital has diminished, the box returns the patrimony amortized to the holder and the rent transfers him. Also, at the age of five, it offers a new call option of the housing with new conditions. “The big difference is that then the price of the apartment will be much more under that at present”, pointed out the sources of the entity.
How to benefit from the descent of the Euribor?
05.02.2009
It is not going to be easy, but there is not doubt that it is possible to improve the conditions of the mortgage by means of a novation of the mortgage or changing bank replacing with the loan mortgage.
There are two principal measurements that the analysts indicate fianancieros to benefit from the first moment of the vertiginous descent of the Euribor.
With the crisis that we have above, the only good news comes from the continued descent of the index Euribor because he supposes a future reduction in the quotas of our mortgages. But in the cases in which the review has been carried out in December and in January us encotramos with the unpleasant surprise of which the letter has increased.
The reason of the increase is that the current Euribor has not been applied to the mortgage loans. The banks apply to the review of the loan the average of the Euribo of two months behind, depending on the conditions with which the contract has been signed. I have here because of so many unpleasant sopresas with the mortgage.
The most painful thing is ecuchar of continued form when the saving calculations are done with the new Euribor. For example, for one average mortgage credit for 135.200 euros to 22 years with a differential of half a point + Euribor that has had the review in November and December, awards the official October valuation when the Euribor was in the highest levels to 5,248 %, the quota amounts to 903,51 euros.
The same mortgage on equal terms checked in this month will have a letter for 700,21 euros, more than 200 difference euros because 2,5 % will be updated, most likely, with the Euribor.
At this point of the movie, it is not descartable that the European Central Bank keeps on cutting the official types away with what, hoping that the logic should be imposed, the Euribor will pronounce more descents. Therefore the imbalance in the quota payment can extend for several months.
It exists several solutions
Different solutions exist to benefit from the fall of the Index Euribor from the first moment. From different consumer societies the recommendation to come to the bank to renegotiate the conditions of the mortgage. The first option is to realize a novation. Namely to change the conditions of the loan without changing for it entity. The Consumer society (OCU) tells that this operation implies a few costs, which are they are reduced compared to the reduction of the mortgage quota that is obtained.
But the consumers warn that “it is quite probable” that the banks do not accept the novation. If they do it, the entity will want to apply a commission on the capital. According to the Users' Association of Banks, a habitual practice is Boxes and Insurances (ADICAE), for it he advises to check of above below the contract to find the above mentioned commission and to negotiate it. “The conditions that they usually negotiate are the interest rate, the term, and tax benefits, like the exemption in the Tax on Documented Juridical Acts and others of character registral”, points out ADICAE and adds that it is the most economic option for the client.
The normal thing is that the banks are hard in the negotiations and push the novation back. In this case the best thing is to come to the "market", to look between other better banks for conditions to replace with the mortgage, to move the mortgage loan to another entity. With a better offer under the arm, the sure bank that is more lax in the negotiations of the novation. “To threaten to replace with the mortgage in the competition is usually a cash. It is a weapon to press to the bank”, indicates Ángel Bouzas, general manager of Freedom Finance, company of advice and financial intermediation.
The substitution is a more expensive enough and complicated option, but it is worth it if the denial of the financial institution is received.
