The rise of the Mortgages in our country it is a fact in this year 2022 and it is advisable to find advice in experienced hands. Find a good financial proposal that calculate your mortgage is the priority objective for a year 2022 that will be very difficult for the economy
Mortgage rise in 2022
According to the latest report from the Spanish Mortgage Association (AHE), at the end of last year our country had 5,5 million mortgages in force and of these 4,1 million (3/4 parts) had variable interest.
90% of these variable loans are linked to the 12-month Euribor. This data means that at least once a year, the fees and the possible rise in mortgages must be recalculated. Always depending on the variation of the index according to the last revision.
At the end of last year the Euribor ended with the second lowest average in its entire history. We are talking about -0,502%. By the end of next year, the forecast is that the rise will be higher than its highest level since 2014.
With the most austere forecasts, the rise in mortgages next year will be 0,9 percentage points. In addition we must add the inflation and the situation of the international crisis that we suffer. The ECB intends to maintain inflation, in affordable terms… 2%. Which means that interest rates will surely rise.
How far can the rise in mortgages go?
An average mortgage in our country (€137.921 in 2021), to be repaid in 24 years and with the reference to the Euribor plus one point... the difference with respect to the installments of last December 2021 and the next one in 2022, will vary between 56 and €69 month. In other words, for a loan that exceeds €200.000, the increase would be above €100 per month.
There is no doubt that families who already have a mortgage are going to pay much more for it. There is also the case of families who plan to apply for a mortgage. The banking entities are going to increase insurance, the conditions of their loans due to a matter of insecurity. It would also be possible to negotiate a fixed rate with banks. Factor that would save us unexpected surprises.
Next July the ECB plans to raise official rates. It would be the first increase in the last 10 years. According to the president of the European Central Bank, Christine Lagarde, next September the era of negative rates may come to an end in the euro zone. This has lasted 8 consecutive years. There will surely be two increases in the interest rate that will mean that the deposit facility rate, now at -0,5%, will go to 0%. Christine Lagarde claims that "We are likely to be in a position to exit negative interest rates by the end of the third quarter”, pointing to another increase in September.
Buy a home in Madrid
With these figures, buying a home in the capital of Spain may seem like a pipe dream. Nothing is further from reality. In this article we recommend that buying a property in Madrid is possible with the right advice. There are companies in the sector that can help you find a solution that suits your profile and your needs. In addition to negotiating on your behalf with different banks to find the best market offer for mortgage loans.
