Euribor rate is dropping fast which translates into lower monthly mortgage repayments

[Lawbird Lawyer]

The Euribor rate is the reference which most Spanish Lenders take to set the mortgage rate of interest. This rate is revisable depending on your Mortgage Deed every six months or once a year.

Due to the recent Monetary Policy followed by the by the European Central Bank (ECB) to drop interest rates this is indirectly affecting the Euribor rate.

The Euribor rate is the rate of interest at which banks lend to each other. It is not governed by the ECB but on lowering the official rates of interest it does affect it in due time.

In any case the continued policy of the European Central Bank to lower the interest rates over the last months will help to drive down the Euribor rate which is always news welcomed by everyone. Spanish banks will revise the Euribor rate and this in turn will lower your monthly mortgage repayments.

So for all those that are struggling to pay their mortgage loan and are considering defaulting you should be aware of this significant drop in 2009. I suggest you find out at your bank when the Euribor rate will be adjusted for your own particular case.

More on this subject.

http://www.cotizalia.com/cache/2009/...a_mensual.html