The Euribor, which is used to calculate mortgage interest rates in Spain, has hit an historic low of 0.53% euros bringing some good news for families with mortgages who could see their mortgage repayments cut by as much as 57 euros a month or 684 euros annually.
Last Friday the Euribor fell to its lowest point for 14 years at 0.515% and has logged a monthly average for April of 0.53%.
In July 2008 the Euribor reached an historic high of 5.393%. However over the last seven months it has cost less than the price of the euro set by the Central European Bank of 0.75%.
This downward trend benefits those with mortgages which are reviewed in May which will be subject to the mortgage rate set for the previous month, April, at 1.368%. On the average mortgage of 150,000 over 25 years the reduction represents a saving of 57 euros monthly, a little more than 680 euros a year.
