Euribor drop means lower mortgages

GOOD news for those paying a mortgage as the 12-month Euribor fell to a record low of 0.329 per cent in December 2014.

The Euribor – the main mortgage reference for variable rate mortgages – in December 2013 stood at 0.543 per cent and at the time the average mortgage value for the purchase of a home was €101,494. Applying the December 2013 Euribor meant that a monthly mortgage repayment was €361.87. With this new rate, the monthly mortgage repayment now stands at €352.46. Homeowners now save €113 a year on their mortgage repayments.

According to El Mundo, those paying mortgages in Madrid and the Basque country will benefit the most from the drop in the Euribor, saving €170 and €130 per year respectively.

Other regions to benefit from mortgage payment discounts of over €100 a year include the Balearic Islands (€121.69), Navarra (€120.96) and Catalonia (€117.12). Those paying a mortgage in Andalucia will save €97.68 on repayments, while those in Valencia will save €86.10 and homeowners in Murcia will save €83.60 a year.