Mortgages will rise another 200 euros while deposits do not finish taking off
With the last rise in interest to 2%, citizens have gone from remaining calm with the installments of the credits contracted to worrying intensely about an escalation that, for now, has no end. More expensive mortgages and loans; almost unpaid deposits; and even higher State debt are the great consequences of the recently approved measure.
The share of mortgages continues to grow as it is time to renew these loans. The rise has already been palpable in a part of housing loans, which have had to be renewed in recent weeks. These credits have already incorporated the rise in the Euribor, which was the step prior to the ECB's decision. The mortgage indicator with which most of the variable-rate mortgages in Spain are calculated has gone from being -0.5% at the beginning of the year to standing at 2.6% this Thursday. This evolution will cause the monthly installment of an average mortgage (145,000 euros at 24 years with a differential of one point on the Euribor) to go from around 530 euros to 750 euros in the next review. A year will mean an extraordinary expense per family of 2,600 euros.
It must be taken into account that the rise in the Euribor will be unequal, depending on when the mortgage was signed: for one from 2005, the fee will increase by 76 euros per month; for that same credit but from 2012, it will mean 132 euros; and for one of 2019, almost 200 euros. In the case of those who are mortgaged with a fixed rate, they get rid of any change: they will continue to pay the same agreed fee. Christmas will be more expensive Those who pull credit on purchases they have planned for this coming Christmas will pay much more for that financing than when they did it last year around this time.
So, at the end of 2021, the average rate on personal loans was at an all-time low of 5.6%. Now, that same financial entity will charge you an average interest that already exceeds 7% (specifically 7.09% with the data for August published by the Bank of Spain, the last available).
Thus, regular operations such as the purchase of a new vehicle, home furnishings, appliances or trips, among other purchases, will be more expensive.
Deposits, at 0.06%
Those who have saved money in their accounts have seen how their banks have barely paid them money due to the profitability of these products. In fact, the commissions have caused that in many cases this profitability has been negative. Until last August, the average remuneration of deposits in Spain stood at 0.06%, compared to 0.04% that had been dragging during the last two years. It is a minimal rise compared to the rise that credits have already suffered, although the data does include the offers that some entities are launching to better remunerate their savings products and, above all, attract new customers.
Most expensive public debt
The ECB's decision also implies that the State will have to allocate more money to finance the public debt it issues to sustain the Spanish economy. In recent auctions, the Treasury has already had to pay more interest on debt issues, under pressure from investors. The cost of the Spanish 10-year bond is already at 3.2%, compared to 2.7% in September. Just three months ago, it was below 1.5%. For this year, the State will spend more than 30,000 million euros in interest, a figure that is expected to increase by 2023 with this new rate hike.