Euribor: A positive year and rising

The Euribor celebrates one year being positive and does so rising again. Although it may seem a long way off to us now, it has only been twelve months since the index left negative figures behind and began its unstoppable rise, which is already close to 4%.
The Euribor reaches 3.757% in April 2023

As indicated by the Bank of Spain in a press release, this reference index has risen to 3.757% in April from 3.5647% the previous month.

Taking the last 12 months as a reference, the index used as the main reference to set the interest rate for mortgage loans in Spain has registered a rise of 3,744 points.

Its maximum was marked in July 2008, when it reached 5.393 percent. Since then, it began a downward path that led it to turn negative. For just a year now, with the start of the war in Ukraine, the Euribor has not stopped rising.

The question that everyone is asking now is whether the Euribor will reach that more than 5% of 15 years ago. For now, this month it has risen but a reduction in the rate of growth has been noted. The index is now at its November 2008 highs.
What is the Euribor and how does it influence the mortgage?

From a technical point of view, the Euribor, an acronym for the European Interbank Offered Rate, is the main official reference index that is normally taken to set interest rates on mortgage loans. It is defined as the simple average of the daily interest rates.

From a practical point of view, if you have a mortgage referenced to Euribor, the most used indicator to calculate variable rate mortgages in our country, with annual reviews, the increase or decrease in the fee will depend on how the Euribor varies in the period one year old

Therefore, if you have contracted a variable mortgage and you have to review this month, you will see how the amount you pay monthly increases. To alleviate this increase, you can repay the mortgage, or at least a part of it, in advance. Here we explain how.

But in a mortgage it is not only important to take into account the rise or fall of the Euribor. You also have to look for a good differential, since the conditions that banks apply to a mortgage can be equal to or more decisive than the Euribor in the payment of the loan.