The Euribor traded for the first time ever below 1%!

http://www.youtube.com/watch?v=i_r8O4zSuU0

The Euribor which is the rate that most mortgages in Spain are referenced to, has dropped six mils in its daily rate and stood for the first time ever below 1%. The indicator is listed as in the range of 0% and the exact value is 0.994%.

Since it was first used as a reference in January 1999, the Euribor has ranged from a maximum of 5.393% (July 2008) and the current minimum, which is below 1%.

The provisional average level of the rate in July was 1.088%, i.e. 1.095 points lower than the same month in the previous year which had a value of 2.183%, causing a significant drop in mortgage charges.

In fact, if the month closed with this rate and the mortgage had a revision this month, the average mortgage of 120,000 euros over a 20 year period, would have a drop of  62.71€ in the monthly mortgage fee and a reduction of 752.52 € a year.

The Euribor has continued be in the lowest levels, since the European Central Bank (ECB) agreed on 5 July a rate cut and established the price of money at the lowest level since the creation of the euro (0.75%) to combat the recession in Europe.

For more information regarding the current value of the Euribor you can visit its website.

• By Surestates
• Marbella and Costa del Sol Property News.
• 1 Jan 1970