Some 8% of all mortgages in Spain are linked to the IRPH rates or mortgage credit reference index. But from November this year, this index will be put out of use as the banking restructuring process advances. In its place–unless there is a clause stating otherwise–lenders will apply the 12-month Euribor rate adjusted to the spread that there has been during the life of the loan.
What would be consequences? Afi analysts explained Thursday in a report that there will be a double impact. Borrowers will notice their mortgage costs ease because the Euribor reference has consistently be lower than the IRPH, and entities will see their interests margin trimmed. By how much? €610 million or so.
The following chart shows the amount of mortgages following different references.