Post by rojonihafsa1 on Mar 12, 2024 10:33:51 GMT
The rise in the Euribor has added more pressure on the interest that households paid on their mortgages : in total, they now pay 8 billion euros more on their loans with banks. "The transfer of income that is occurring due to the rise in the Euribor from families to financial entities is 8,000 million euros ," said the second vice president and Minister of Labor and Social Economy, in her speech at the 2023 Trends Forum. , organized by El País . "Financial entities are benefiting like never before from the rise in interest rates," Díaz criticized. In recent months, the Euribor has skyrocketed to its highest level since the end of 2008. The historic interest rate increases announced by the European Central Bank have made the price at which banks lend money more expensive, and that rise has been transferred to the Euribor, the index that marks the average level of mortgage interests in Spain. In December 2021, the index was at -0.5%, close to historical lows. Never before have mortgages been so cheap as then.
In a matter of months, this index has skyrocketed to reach the 2.63% expected in October. This is how the latest rate increase that triggers the price of money affects you: more expensive mortgages and loans, benefits for savers and the risk of variable income The rise in rates will result in an increase in the cost of financing for all agents, households, companies Jamaica Mobile Number List and the public sector. The problem is that, in relative terms, those who will suffer the most will be households and, more specifically, those with lower incomes, for whom the percentage of disbursement over their total income is higher. "We must act," said Díaz, who defends a response that alleviates the bite of inflation and the rise in rates for Spanish incomes. So far, the Government has approved several packages of anti-crisis measures , including everything from a cap on the price of electricity, to a limit on rent revaluation , to free train and suburban passes and direct aid for vulnerable households.
Before the end of the year, a new plan of measures will be approved, where some of those currently in force will be extended. This same week, the Council of Ministers announced an agreement with the banks to alleviate the mortgage burden of the most vulnerable families, which will allow 1 million households to benefit from variable rate mortgages that meet the agreed requirements. As explained by the Executive, this agreement will allow vulnerable households with mortgages the possibility of restructuring their mortgage at a variable rate with a lower interest rate during the 5-year principal grace period, specifically it will allow the Euribor - 0.1% compared to the Euribor + 0.25% current. For Díaz, however, this pact is not enough. The minister said a couple of days ago that the agreement could be "substantially improved," and accused the financial entities of a lack of will to collaborate.
