August 2006
You're watching the articles of Euribor for the month of August 2006.
The latest rise in the Euribor may involve a change of mentality of the Spaniards in the recruitment of a mortgage.
Manuel Pardo, president of ADICAE, said in statements to Europa Press
"It is necessary that a change in the model mortgage on all sides, allowing end the frivolity of the Spanish comes to borrow," said Brown, who called for "more responsible actions" to both banks as a customers not to bring to limit the scope of their household economies. "The terms of repayment are very high and very high monthly premiums for salaries that are paid in many cases," he said.
For his part, a spokesman for the OCU told Europa Press that the new rise in the Euribor will have a "significant and very negative" about family economies, "with a direct impact to the pocket," because the level of mortgage debt families is at record levels.
It also warned that the rise in the Euribor and the moderate rise in official rates would lead to more difficulty in accessing finance, a problem that adds to the sustained price hikes for housing.
Written by Carlos Lopez on August 31, 2006 with 29 comments
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The Euribor reflects the rate at which banks lend money, so, according to data from the Bank of Spain, financial institutions applied last July an average rate of 4229% in mortgage loans to more than three years for the purchase of a home free. Since the 4th of this month, the Euribor has broken forth the maximum annual had registered last July 12 (3.56%) in the money market daily. Just the day after the ECB decided to raise short rates to 3%, the Euribor stood at 3603%, a level that barely dropped two hundredths in the four days.
The ECB said then that it will not be the last increase of the year, although analysts are betting that the next review will not play tomorrow and that will be in October. One theory shared by the technicians of Research Department of Caja Madrid, already a month ago indicated that it was very possible that the Euribor fix its peak in August, about 3.6% and then oscillated around this level depending on the messages that go throwing the ECB president, Jean-Claude Trichet. It has stressed that the rates "remain low in real and nominal terms."
The most decisive for the ECB will be the evolution of inflation in the eurozone, which grew again in July in terms, up 2.5% and Spain with exerting the greatest pressure on prices, because here this index stood at 4%. A pressure that is noticeable especially after the HICP achieve stable in May and June, despite the challenge that led to the massive energy bill in the euro, the increase in the price of oil.
Written by Carlos Lopez on August 31, 2006 0 comments
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It talks about the conversation with a person who works in a branch financial:
-Here is a prototype of customers. Couple, newly married. Each charge thousand euros. They want a mortgage of up to forty years. Have no idea of what are interest rates. In fact, it was thought that monthly premiums are eternal, and when I say that is reviewed and may go up, do not understand it. In the end, I say that by the middle of next year, the Euribor could reach 4.5% as a realistic scenario. Oh, and do not pay either a euro entry. What do we do? Should we give it? And what happens if one runs out of work? Because of course, also want mortgaged per thousand euros per month. Anyway, today, unless they do not come with an entry of 30,000 euros, or similar, we are harder than ever. This is getting increasingly worse.
You can read it here: http://app2.expansion.com/blogs/web/saballs.html?opcion=1&codPost=5336
Written by Carlos Lopez on August 29, 2006 with 2 comments
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It seems that the fixed-rate mortgages are regaining the attraction that never should have lost.
The astronomical prices that reach the homes have forced customers to seek the lowest monthly mortgage market share as possible, before they have resorted masse variable rate loans, backed by a price of money that has been over two years at historical lows.
But the era of low rates is drawing to a close Is it the time for caution and then hire mortgages to fixed rate? Experts predict that the Euribor end of the year close to 4% depending on the futures market anticipates.
Banks and boxes agree that the customer should be thinking of accommodating an environment of higher rates and consider the desirability of a mortgage fixed interest or at least, a mixed, with initial fixed interest in the early years, the higher difficulties, and then move to variable.
'The client is installed on the idea that low interest rates are a constant and only seeks to assume the initial charge, "says Ramon Gras, director of products and processes of Banking of Banco Sabadell. Gras acknowledges that the bank began to bet on the market of fixed-rate mortgages earlier this year, when 'it was a good time, although the response was very low. " The same bewilderment shows Balcones Alejandro Garcia, director general of Halifax, for whom the alert message on the impact of rises in mortgage rates to variable interest 'no creek between customers'.
98% of the mortgages made in the month of May was a variable interest, compared with only 2% fixed rate, according to data from the INE.
If accounts are made for a mortgage of 120,000 euros to 30 years to recruit at a floating rate of Euribor plus a point, ie 4.5%, the monthly fee is at present is of 608 euros. Next year, with a rise of the Euribor half a point, the monthly fee can rise to 645 euros, the same amount it now hired if a fixed rate to 5%. The difference is paid from the moment nearly 40 euros a month, but with the reassurance that the monthly fee and is shielded to future increases in interest rates.
More information: http://www.cincodias.com/articulo/D/hipotecas/tipo/fijo/recuperan/atractivo/alza/intereses/cdspor/20060826cdscdicnd_1/Tes/
Written by Carlos Lopez on August 28, 2006 with 2 comments
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CiU presented at the next session of a battery of proposals to alleviate the effects of rises in interest rates in household consumption, such as that users can expand without cost repayment terms of their mortgage or extend the terms of such a consumer credit.
The goal is that price rises ahead of the money they do not diminish the consumption of families, one of the engines of the Spanish economy, "said the spokesman for the Economy of the parliamentary group of CiU, Josep Sanchez Llibre, who also advanced that arise "An emergency plan" to control inflation, in his view, the great unfinished business of government.
The main indicator for setting the price of mortgages, the Euribor, rose in July to 3539%, while yesterday remained at 3608%, a level at which not moved since 2002.
At the beginning of the month, the European Central Bank (ECB) placed the official rate in the euro zone at 3% after a quarter-point increase, a rise that analysts believe that will not be the last year, which could end up in 3.5%.
"Interest rates do not affect industrial activity, where there is room enough to be able to absorb increases, but it can very adversely affect household consumption, given the high level of indebtedness that have their economies, mainly for housing," he said Sanchez Llibre.
He explained that, therefore, his group will raise a bill to reform "in depth" the mortgage market in the sense that the mortgages' can have the maximum flexibility ".
Thus, they suggest that users can increase cost without repayment terms of their mortgage loans to maintain the level of fees' in the same levels as at present. "
Another of the measures to include in his parliamentary initiative is that interest rates that apply to mortgages can be extended, "in some cases, a consumer credit to be asking, for example, to buy a car.
Control inflation
The MP stressed that the main reason that drives the ECB to raise rates is inflation. He pointed out that to amend the situation, bring into focus a battery of parliamentary initiatives for the development of an "emergency plan" to pursue the Spanish inflation will fall within the limits set by the ECB, which is currently at 2% .
The solutions are delivered by the determined support to the industry, the technology sector and telecommunications services and high value-added measures, he said, would serve to increase productivity and lower inflation. EFE
Written by Carlos Lopez on August 24, 2006 0 comments
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Uno-e has launched its deposit at 8%, but like all similar deposits, we must remember that this profitability, we will only give the first month of profitability and a 1-month Euribor in the five following, which allows customers to benefit from the rise in rates and it turns out according to the bank, one of the options for saving "more competitive" in the financial market. In August the Euribor, the APR 8% of the deposit within six months stands at 4%.
The reservoir, launched a year ago, combines a guaranteed return for a period of 6 months with an offer banking services such as debit cards, direct debit or remittance transfers to the EU, free to the customer.
Specifically, the deposit 8-One and is contracted with an account to pay 2.50% APR, which is exempt from commissions and also allows you to send transfers to the EU, benefit from a debit card and debit payments at no cost for the customer.
This enabled warehousing has managed to increase the resources of Uno-e to 30% and further progress in its strategy of customer loyalty.
"We were the first to bet on deposits of high remuneration term exceeding one month Euribor. The market has valued very positively this product, which allows customers to benefit from rising interest rates for several months followed, "said Cristina de Paria, CEO of Uno-e.
For pariah, the 'Deposit One 8-e' has emerged as a "fundamental" to attract new customers and related to one-and as evidenced in the increased recruitment of the number of products per customer and the high volume retention of balances obtained
Written by Carlos Lopez on August 22, 2006 with 2 comments
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