MADRID | The Euribor, at which most home mortgages in Spain are referenced, has fallen 0.001 percentage point in its daily rate down to 1.044 percent. This is the tenth consecutive occasion in which the inter-euro zone banking rate decreases to a historical minimum. Its average level in July was of 1.127 percent, one point less than a year ago, causing a significant reduction of mortgages’ total debt, on both new ones and those that have to be revised from now on.
In fact, if the month closes at this rate, the average Spanish mortgage of €120.000 at 20 years would experience a cut of €60.54 in the monthly fee and savings of up to €726.48 per year. The relief it will bring to the borrowers’ pockets, however, will be cushioned by the differentials that banks apply to their lending, as Spanish entities continue to face financing difficulties in the markets.