Mortgage rates
 

I have a small mortgage (non resident) with Banco De Valencia which I took out some years ago, so my statement tells me paying about 3.25% Interest. It now shows about 5.84%.

I thought the rates were going down in Spain aswell ??

Or am I incorrect.

Thanks

Re: Mortgage rates
 

Just had the exact same conversation with the Director of my Spanish Bank. He tells me that the rates are measured against the “ IRPH” similar to the Euribor, this rate is used as reference for variable rate mortgages and published by the Banco de España. It represents an average rate for mortgages offered by all Spanish financial entities, and falls and rises in the market rates but affects later than in the case of another index like the euribor.

Rates are only revised once a year - as mine was due for adjustment in November, they took the average rate for October and used this figure - This was the banks justification of why i am having to pay more!!

Re: Mortgage rates
 

Thanks Tolly,

That explains why mine only seems to change every year. I'll hope it goes down then but wont hold my breath!

What with the exchange rate its getting abit depressing.

Re: Mortgage rates
 

You can see the rates here http://www.bde.es/infoest/a1901e.pdf

The relevant one is in column 9 and as you will see, it is not showing any signs of coming down! The Euribor rate is in column 7 and that shows a significant decrease.

Most banks seem to use Euribor but some, including Banco Popular and their subsidiaries, use the "average mortgage" rate.

Re: Mortgage rates
 

Thanks Fred,

Very Interesting - I'll add that link to my favourites!

Doesn't look like we'll be saving money soon, Mine about 5.85% so assuming Banco De Valencia use the same system

Re: Mortgage rates
 

Some mortgages have the rate set annually and others are monthly.

Mine varies monthly so should benefit from falling rates.

3 month Euribor is now at 3.155%

Re: Mortgage rates
 

OK