It is likely the euribor for mortgages, the reference for interest rates on the majority of loans in Spain, will end the month of July at 2.185%, its highest level since January 2009.
Although there are still a few days left and interest rates change every day the final rate will be set by calculating an average for the month.
The interest rate on mortgages which are subject to revision in July will increase for those over 25 years by 10%; over 20 years 6%; and for those over 30 by 11.5%. On a mortage of 150,000 euros over 25 years at a rate of half percent above the euribor the rise in repayments will be some 61 euros monthly, 732 euros over the year.
There has been a steep rise in the Euribor over the last year and this trend is predicted to continue possibly reaching 2% by January next year. Interest rates in July last year stood at 1.373%.
