This is the third month in which there has been a reduction in loan installments indexed to the Euribor at six and three months, after almost two years of them rising.
The house payment paid to the bank will, in April, be reduced by 12 euros for contracts indexed to Euribor at six months but only by one euro for contracts with Euribor at three months, according to the simulation by Deco/Dinheiro&Direitos.
This is the third month in which there has been a reduction in loan installments indexed to the Euribor at six and three months, after almost two years of them rising. However, there are different behaviors due to the different evolution of Euribor in the various maturities, related to expectations about what the European Central Bank (ECB) will do.
While the six-month Euribor fell from an average of 4.030% in February to 3.895% in March, the three-month Euribor average remained at 3.923%, as markets adjusted their expectations and no longer think that the ECB will cut rates again. interest rates in March, but only in June. The 12-month Euribor average rose in March to 3.718%.
According to simulations for Lusa by Deco/Dinheiro&Direitos, a client with a loan worth 150 thousand euros, for 30 years, indexed to the six-month Euribor and with a ‘spread’ (bank’s profit margin) of 1%, From April onwards you will pay 795.63 euros, which means 12.35 euros less than what you have paid since October.
As regards loans indexed to three-month Euribor, the house installment – for the same conditions – drops to 798.19 euros, 1.09 euros less per month compared to the last review, in January.
In the case of contracts indexed to the 12-month Euribor revised in April, there is still an increase in the installment since this month the average 12-month Euribor rate was still higher than in April 2023.
A customer with a loan worth 150 thousand euros, for 30 years, indexed to the 12-month Euribor and with a ‘spread’ (bank’s profit margin) of 1%, will pay 779.58 euros from March onwards, plus 6.39 euros compared to what you have paid since April 2023.
The average Euribor considered for the purposes of reviewing a variable rate loan is that of the month prior to the signing of the credit contract.
Analysts from ‘fintech’ Ebury (specialist in international payments management), cited by the Efe agency, estimate that better news for those with mortgages will arrive later than expected and that we will have to wait until June for more significant Euribor drops. and always depending on data on the evolution of the economy (including inflation and wages).
Tags: House payments drop euros credits sixmonth Euribor rates
