, which will impact the installments for all those who have signed a variable-rate mortgage. However, although the rise is widespread, the rise in the Euribor will not have the same impact on all the variable mortgages that are signed in Spain, but depending on the year they were contracted and the amount already paid.
In this way, what will be the real impact that this increase in variable mortgages will have depending on the year in which they were contracted? Idealista/mortgage experts have made a theoretical calculation about the surcharge that families who have to update their loan with the current Euribor will have to pay based on the year in which they contracted the mortgage. To carry out this analysis, an average mortgage of 150,000 euros has been used, at an interest of Euribor +1.5% and 25 years, assuming that no early repayments have been made.
With these figures, the study reveals that those who signed a variable mortgage in 2005 will have to face an increase of 44 euros in the monthly installment, which means 528.4 euros more per year. These amounts rise to a monthly payment of 66.5 euros (798 euros per year) in the case of hiring it in 2010, while five years later the increase in the variable mortgage payment would be 89.4 euros per month (1072 .6 euros per year). The same example indicates that variable mortgages contracted in August 2021 would have an increase in the monthly fee of 118.4 euros, which represents an annualized increase of 1,421.2 euros.
The “French” amortization system is the one used in most of the variable mortgages that are signed in our country. According to this model, the monthly installment to be paid is constant for 12 months, and in the first years of the life of the loan, most of the installment is destined to the payment of interest and the rest to the principal. These factors are reversed over time, until at the end of the loan practically only principal is paid. For this reason, the impact of the increase in the Euribor will not be the same depending on the year of contracting.
In addition, from idealista they point out that in order to calculate the real impact of the rise in the indicator, the volume of contracts that have been signed in Spain in recent years must be taken into account. Since 2015, the increase in fixed-rate mortgages has been exponential. In fact, the fixed rate represented 73% of all mortgages constituted in June.
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