July 2006
You're watching the articles of Euribor for the month of July 2006.
And van 10 months of consecutive rises!
In July has happened over the same. The index has rebounded by over 130 basis points regarding the data July 2005 and has topped the 3.53% 3546%, the highest level since just four years ago, then stood at 3645% - with what the consequence for mortgages is more than evident. Who would touch review of the loan with this data, you'll have to pay a higher fee, to the point that it can begin to wreak havoc on the family budget.
The holder of a loan half (remember that this is an average of mortgages active, not new), according to the National Statistics Institute (INE) in April was at the 138,958-euro, a 25-year term and a differential of 0.5%, you will have to pay a monthly fee of 735.78 euros, compared to 635.21 euros that he had to pay with the Euribor July 2005.
This implies that the upswing in the Euribor will pay 103 euros a month, a round figure, and a year disbursement reaches magnitudes in the family finances, 1,242 euros.
This is almost two share more than it paid so far. Virtually it is as if the mortgage had happened to have two more shares.
The tenth rise in the Euribor, with final data published as the Bank of Spain in just over two weeks, also has another important effect. If the monthly average of 3546% in July was the differential sum to be paid, most cases exceeds the 0.5% - the owner may begin to pay interest and above 4% on their mortgages. It is bad news for consumers, given that household debt already exceeds 110% of disposable income.
Written by Carlos Lopez on July 31, 2006 with 6 comments
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You could see it coming, but now we have the data: 1.200 million. That explains the opening of offices "natural" for ING, to further attract investment clients, because to ask for a mortgage, it seems that we do not care whether the bank's solvency.
The odd thing is that while ING lost customers, another bank Online (Openbank, backed by the BSCH) has increased the stakes of its funds in 100 million.
Step by pasting the news:
Judicial intervention of Afinsa and Forum Philatelic last bill passed on May 9 to ING Direct, which experienced the worst month in its history. Customers of the bank withdrew from the institution in that month 1,200 million euros, almost 10% of the total portfolio, according to reports published yesterday by the Spanish Banking Association (AEB). Customer deposits rose from April to May of 13,819 million euros to 12,613 million as a result of the panic created among citizens in all those investments whose remuneration was above the market average. A large number of savers became wary of the interest paid on-line banking for deposits and opted to divert their savings into traditional systems. This is joined to some rumors that surfaced in the financial market about the viability of the financial institution in Spain, which resulted, according to Efe, in the loss of half the money raised in the previous twelve months.
Change of strategy. ING has always insisted that their activity has nothing to do with the philatelic societies and has recalled its operational is subject to the supervision of the Bank of Spain and the rules governing the performance of financial institutions. The deposits are safeguarded in this case by the Deposit Guarantee Fund of the Netherlands, where he is originally from the parent bank. In the last few dates, ING has launched a strong advertising campaign which highlights the size of the group in the world. ING is the fourth largest banking group in Europe for profit and the sixth by market capitalization. It operates in 40 countries and has over 60 million customers. The scandal of the stamps has forced ING to change its strategy with the opening of large branches in major Spanish cities in order to advise savers.
Written by Carlos Lopez on July 27, 2006 with 8 comments
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It seems that the dairy cow of mortgages is running out and once that is mortgaged half spain, is by attracting the other half spain thrifty.
We have been commenting on this page, how the escalation Euribor was going to change the financial products that banks offer us, and we do a summary of the situation and see the funds available for those who are fortunate enough not to be indebted up to the eyebrows and will not be forced to seek personal loans to pay the mortgage ...
The precursor to market in a short-term deposit in Spain was ING Direct, which put the first pick in Flanders in April 2000 with a three-month offered a return of 5.5% APR. At present, ING offers a deposit of one month from 7% APR, without any penalty for withdrawal at the end of which you can deposit the money into an account with Orange interests of 2.45% APR. The long-term deposits of the Dutch entity of 12 or 24 months, offering a return of 3.25%, but if they have a penalty of 1.25% APR in case of cancellation.
The savings have been the last to join the "hunt" of the deposit. Caja Madrid launched a few days ago the Deposit 12, with a return of 12% in the first month and 2.40% for the remainder of the term, which is a yield of 3.26% APR at the end of the year that lasts. The minimum contribution is 3,000 euros and the deposit may only be hired until September 10.
La Caixa has also made its presence felt with a unique and novel strategy related to the contributions of the Ibex-35.Ofrece customers the opportunity to benefit from the upgrades to get the bag without risking the capital invested. With a minimum of 500 euros, the profitability of the first month high as 8% nominal annual, and for the rest of life (1 year and 14 days), includes the amount of monthly income of Ibex, with a limit of 1, 5%. If the stock market climbing more than 1.5% per month throughout the period, we can achieve a maximum return of 18.04% APR. That if, interest payments and capital are paid at maturity.
Citibank, meanwhile, offers a 10% in the first month since the beginning of the second amount is transferred to a debit account with a 2.50% APR, which can be extracted to generate interest. Banesto has a deposit of one month with a 7% APR and another to 12 months with a 4% APR, both with the payment due date and one year with a penalty of 2% if it is repaid before its conclusion.
Uno-e, a division of the BBVA and Telefonica offers fixed rate deposits and variable. The more "revolutionary", a type known as Double-e, is a 6-month deposit that offers a nominal 5% during the first two and the rest of the period linked to the Euribor.
In Openbank of Santander, have the Deposit Welcome to new customers, and has risen from 7% to 8% APR the first month. There is the possibility of "chaining" this month with a deposit for one year, to 3.25% APR, which represents a return of 3.61% APR.
More information e: http://www.elmundo.es/suplementos/nuevaeconomia/2006/334/1153605605.html
Written by Carlos Lopez on July 25, 2006 with 1 comment
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We do not comment much, "the other side of the Euribor" that a rise in rates can be beneficial for the economy (which is not mortgaged for many families).
Today you can read in "The World" article "Rising rates, good for the economy" in which he quoted the words of Joaquín Almunia:
"A gradual adjustment in the property sector could even have positive consequences for the Spanish economy because it would favor a shift in the composition of growth, so it is less based on domestic demand and that has a better mix between domestic demand and external demand '
On the other hand, the secretary of the Economy and Employment of the PSOE, Inmaculada Rodriguez-Pinero, believes that "a sharp rise in interest rates" would not result in a bad for Spain because "we have a high inflation differential with the European Union and this increase "can get a little bit so expansive growth in demand and help to reverse the inflation differential."
As such, we have too much debt in some historically low rates and that has overheated the economy. It is not ruled out a price adjustment in certain assets ...
Written by Carlos Lopez on July 21, 2006 with 20 comments
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What we already knew 19 days ago, was confirmed today by the Bank of Spain (never understand why take so long to make the calculations). So it is possible for us to read it in the media.
So you hit the press release:
The Euribor, the kind that are awarded most mortgages in Spain rose in June to 3401%, which is at the highest level since August 2002 and represents the ninth consecutive monthly rise and a new cost of mortgages, confirmed yesterday afternoon the Bank of Spain.
Specifically, the Euribor rose 0093 points over the 3308% recorded in May and 1298 points in relation to 2103% where it was placed in June 2005, which will translate into a rise in shares of mortgage loans to be reviewed annually with the new rate in the coming days.
Specifically, half a mortgage of 120,000 euros granted for a period of 20 years with a spread of 0.60 points over Euribor, the monthly premium would rise from about 647 to 727 euros, an increase of about 80 euros a months and 960 euros for the whole year.
This new rise in the Euribor up to 3401% in June poses placed on the highest level since August 2002, when this indicator stood at 3440%.
Analysts consulted believe that this rise will not be the last and predict further increases.
In this sense, believe that the possible rise in interest rates by the ECB in August supports this trend and, indeed, the level of the Euribor at 3.4% and the increase seems to discount the price of money.
Market forecasts is that the Euribor will fall in coming months in the environment of 3.5% and even some companies that provide analysis of closing the year around 4%.
The Euribor is calculated by the European Banking Federation with the data of the main entities in the euro area and consists of the average interest rate for cash transactions in euros deposit term.
As for the rest of references, MIBOR, the interbank rate which served as the official reference of the mortgage market for transactions made prior to January 1, 2000, also rose in June to 3399% compared to 3306% in May .
The average rate of mortgage loans to more than three years of all the banks in June stood at 4132% from 4048% in May. In the case of banks, the average rate was posted in 4055% 4002% compared to the previous month, while that of the boxes went up to 4200% 4088% since May.
Written by Carlos Lopez on July 19, 2006 with 1 comment
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Rising rates mean almost instant rise in mortgages, but what about savers?
Today Uno-e, online banking for BBVA, has begun to send letters to its customers to announce that from next Aug. 1 will begin to improve the profitability of some of its savings products, from the current 2.25% until 2.5%.
I mention Uno-e, because it's who you do today, others did a few weeks ago and will do so shortly, but the change of cycle has already come and borrow ceases to be profitable. It is possible that the mortgage market has plateaued and banks to change their strategy toward personal loans (for the very looted) and accounts for medium-high remuneration.
Written by Carlos Lopez on July 17, 2006 with 11 comments
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