Society Environment Politics Economy Culture Basque language Feminism Education International Opinion

saturday 23 november 2024

Automatically translated from Basque, translation may contain errors. More information here.

Elhuyarren itzultzaile automatikoaren logoa

Europako Banku Zentrala

Euribor rises to 2% and mortgage rises 35% to thousands of households

The increase in interest rates agreed by the European Central Bank is the highest in history. The Eurybor rate is the rate used by banks to calculate contributions in variable rate mortgages and has risen to 2% on 9 September. This will mean that the cost of paying housing for thousands of families will be 35% higher.

ARGIA

13 September 2022 - 11:52

Zarata mediatikoz beteriko garai nahasiotan, merkatu logiketatik urrun eta irakurleengandik gertu dagoen kazetaritza beharrezkoa dela uste baduzu, ARGIA bultzatzera animatu nahi zaitugu. Geroz eta gehiago gara, jarrai dezagun txikitik eragiten.

El Salto has produced a report setting out a concrete example of what mortgages are going to cost: M. C. contracted the variable mortgage two years ago and then Euribor and interest rates were negative. It has a debt of 180,000 euros to pay in 30 years and earmarked 586 euros per month for the payment of the mortgage. If the day on which your mortgage is renewed (renewed annually with the date of signature of the contract) was 9 September, your share would increase by 39%, to 816 euros per month. And if the Eurybor were to reach 3% (economic newspapers do not rule out this risk), the monthly fee would be EUR 921, 57% more than its share.

According to the Fotocasa website, the increase in interest rates by the European Central Bank means an increase in variable interest mortgages between EUR 1,400 and EUR 3,400, i.e. between EUR 124 and EUR 288 per month. And all of this, calculated if the Eurybor was 1.5%, predicts Fotocasa, which has already risen to 2%.

"Has expenditure on basic materials increased by 16% compared to 2021? Quiet, the European Central Bank arrives and will raise the mortgage by 37% to repair it," says economist Carlos Sánchez Mato, in El Salton. This article explains the consequences of the rise in electricity prices and the sequence of the move of oligopolies.

80% of mortgages are variable

Variable mortgages were the most frequently contracted until 2020, although from that year they are not in gas. 80% of mortgage households live by staring at Eurybor to know how much they will pay each month. Housing platforms warn that this rise of Eurybor is going to mean a lot of change in the coming years.

Paco Morote, a member of the Mortgage Affected Platform, recalled in El Salto declarations that in 2021 there have been more than 41,000 evicted homes in Spain and 11,000 in the first quarter of 2022. According to Morote, the approval of the Housing Act by the Spanish Government can alleviate the situation, but not any law, but the proposals presented by the housing movement.

Europako Banku Zentrala Etxebizitza eskubidea

Most read

Using Matomo

They launch a smart pocket device that turns the texts into Euskera into a voice.

Onintza Irureta Azkune

Perurena

Jon Garaño

“Change and movement I am passionate about”

Lander Arbelaitz Mitxelena

Help us to rate expressions in Basque in this online questionnaire

Sustatu

3x03: Makro-berriztagarriak Araban | Iñigo Leza

ARGIA | Bizi Baratzea

X-tik irten nahi? Nor dago Mastodonen eta Blueskyren atzean? Nola finantzatzen da bakoitza?

iametza

You are interested in the channel: Europako Banku Zentrala

2024-06-06 | Urko Apaolaza Avila

The drop in interest rates, how will it affect the housing crisis?

The European Central Bank will cut interest rates this Thursday, after two years of continuous growth. The increase or decrease in money has a direct impact on Euribor and the mortgages that citizens have to pay. But how will this change be noticed?

2023-06-15 | Urko Apaolaza Avila

The Federal Reserve EE.UU. stops making money expensive for fear of recession and further bank collapse

The Federal Reserve has decided to maintain interest rates for the first time in a year, after a steady increase. The main argument is that inflation has fallen, but behind there are more ghosts, such as the economic recession and doubts about the situation in the American... [+]

2023-03-17 | Urko Apaolaza Avila

The ECB raises interest rates and continues with its plan to put the cost of the economic crisis at the cost

The ECB increases interest rates by half and puts them at 3.5%. Following the collapse of the US bank Silicon Valley, he doubted what Frankfurt was going to do, but the path of falling inflation has been maintained and the cost of the economic crisis has returned to the... [+]

2023-01-09 | Gorka Peñagarikano Goikoetxea

"Food must be paid", ECB warning to countries with high public debt

A number of economists point out on a ECB blog that progressive and effective measures are being taken; otherwise, severe cuts will have to be made in the future or high inflation will be maintained to keep countries’ profits above debt.

2022-10-28 | Urko Apaolaza Avila

Raising interest rates: "It can increase unemployment, but we will do what we have to do"

The ECB raises interest rates to 2%. In the last few months, for the third time in a row, it has made a huge climb to combat inflation. But this, besides affecting mortgages and citizens’ pockets, can lead to an economic recession for many experts and further unemployment.

2022-10-12 | Urko Apaolaza Avila

Interest rate: rise, impoverish

The price of the money market, the interest rate, continues to grow in central banks around the world, even in Europe. The European Central Bank (ECB), after several years of almost free donations, increased this rate by 0.50% in July and 0.75% in September, the biggest historic... [+]

2022-10-12 | Urko Apaolaza Avila

The expropriated class in Europe

Citizens without heritage, in poverty

All the data and statistics from recent years say that the majority of European society has become poorer. The economic policy of institutions such as the European Central Bank has to do with this, and social inequality will increase more between the owners of a certain heritage... [+]

2022-09-29 | Urko Apaolaza Avila

The Bank of Spain says they can raise interest rates to 2.5%

The Governor of the Bank of Spain, Pablo Hernández Cos, announced at an event held at the BEC in Barakaldo that the European Central Bank plans to raise interest rates between 2.25% and 2.5%.

2022-09-13 | Carlos Sanchez Mato | El Salto

Lagard and De Guindos get your mortgage

Carlos Sánchez Mato is professor of applied economics at the University of Madrid and responsible for the programming of Ezker Batua. We have translated into Basque the article he has written in the middle of El Salto. "The European Central Bank has decided to raise the price of... [+]

2022-07-21 | Urko Apaolaza Avila

The European Central Bank increases interest rates by 0.50%, twice as much as expected.

The European Central Bank has at last increased interest rates by twice as much as announced a few weeks ago, by 0.50%. It reverses the trend of eleven years and stops offering cheap money to break with the increase in inflation.

2022-06-09 | Urko Apaolaza Avila

Why increased interest rates will not serve to curb inflation

The European Central Bank will increase interest rates by 0.25% in July and will stop buying the debt for the first time in eleven years. Banking authorities have argued that this is a measure to deal with price increases, but will it?

2022-03-24 | Gorka Bereziartua Mitxelena

The economy of the European Union in the midst of the war in Ukraine

Tank above Keynes

The Ukrainian war has questioned the economic measures that had been announced for the economic recovery after COVID-19. In recent weeks the Community authorities have taken decisions of a wide variety of kinds. Some of them will directly affect the life of the general public... [+]

2021-09-09 | Urko Apaolaza Avila

The European Central Bank will buy less public debt with better projections of the pandemic

Bank President Christine Lagarde has announced changes to the European Central Bank’s public debt purchase plan to deal with the COVID-19 crisis: with rising inflation and better forecasts, debt buying will take place at a slower pace.

2020-07-16 | Mikel Eizagirre

Yanis Varoufakis (Germany)

"If you're afraid of the troika coming back, you have reason to do so. The troika will come back."

The former Greek Finance Minister referred in an interview given to the daily newspaper El Diario.es to the negotiations on the recovery fund. The summit will be held this weekend and the countries of the European Union will negotiate the collection of a common fund to mitigate... [+]

Eguneraketa berriak daude