The Euribor keeps on beating descent records

www.minus19.com

16-03-2009 | Lluisa Llamero

Evolution of the Euribor in March, 2009

The Euribor keeps on making the mortgaged ones happy and supports his tendency to the fall, up to the point that is located in the minimums of his history. If in February it closed in 2,13 %, in what we take of month it has already descended below 2 % in the different days in which there has been bank activity. On March 15 the cut is located in 1,923 %, and the average of the two weeks is 1,963 %, a value that is 2,627 points minor to that of March of last year.

This way the reference index most used to calculate the payment of the mortgages was not in so low values from June, 2003, in particular the minimum intradía more down registered till now was corresponding on June 16, 2003 when the indicator closed in 1,929 %. The average of this month also was showing the record of lower medium month's characteristic with 2,014 %.

With the average that this one reaching during this month a mortgage for 120.000 euros to 20 years that is checked by this fact (it depends on the cases, but it is habitual that is two months old later) would save 164,2 euros in his monthly quota and of 1.964 euros a year. For a loan for 300.000 euros, the saving would be almost 5.000 euros a year.

But the financial institutions are still not moving his clients the descent of the price of the interests because in the new credits they increase his extra charge commission on the Euribor. This is especially significant for the credits to the consumption. According to the last information of the Spanish Bank, the entities were receiving of average in January 11,55 % TAE for the authorization of a new loan to the consumption, when one year earlier they were asking for 10,55 % and in December 10,99 %. The boxes are the most expensive entities with 13,18 % TAE while the banks were asking for 11,58 % TAE in January opposite to 10,67 %-year-old earlier.

With regard to the mortgages, that són the cheapest loans, the interests of the banking keep on being much over what was "normal" years ago if it was taken like reference the Euribor. Also, many entities already include clauses in the writing of the credits for which they establish that they will not cite as an example this indicator if it lowers any more than one certain limit. As a whole in Spain a new mortgage TAE was going out in January to an average of 4,97 %, while last year was 5,56 %.

The increase of the loans happens simultaneously that there is a minor demand that is a clear consequence of the economic crisis, but also of the hardening of the conditions that impose the banks and boxes at the time of approving them and granting them. Projects that earlier were financed now already are not considered to be viable. According to the last survey of bank loans that includes in the Economic journal of the released Spanish Bank this week, the Spanish banking hardened in the last trimester of 2008 the credit offer to hearths and companies not only with regard to previous trimesters, but to the rest of the European Union.

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