12 month Euribor recalculation

Hi all

Im with Halifax Banco and after weeks of asking they finally mailed me with details of my new Euribor rate. 

My mortgage changes May every year on the 12 month Euribor,  Haifax just said my new rate is 1.909%  - Euribor as of April.

I have checked the Euribor web site an found the highest rate for  April was 1.80 % and has been going down every since.

Im waiting on Halifax answering why they gave me the 1.909% and why as of April. Dont expect a quick reply

Has this happened to anyone else, is this another Spanish bank rip off ??

Thanks in advance

Rob

All Spanish banks use an average rate of the official Euribor postings of 2 months prior to the official setting. Thus if you completed originally in May they will use a rate based on an average of March settings. This is not a cunning ruse or plan to rip you off. If the setting is linked to annual Euribor they all do this. I think perhaps it stems back to times pre technology as they need to notify of the change in rate and this permits people two months or so to setup new payments etc to allow for any changes in rate - snail mail still  can take a great deal of time here in Spain (assuming it gets there at all).

If the person at Halifax you have asked has been unable to answer the question perhaps you would like to give them the answer.

1.909 % is the 12 month Euribor rate for March 2009 which is the applicable rate if your review is in May (as Smiley says the banks take the rate at 2 months prior to review !!).  This rate is issued by the Bank Of Spain so Halifax are correct.

Incidentally 6 months before this Sept 08 the rate was 5.384 % so if I was you I would thank your lucky stars !!

For once this is not a spanish bank rip off and they have been totally up front.

Beware though as my mortgage (interest 0nly) interest rate reduced but my bank still charged me the same amount (after querying it they did reduce the capital accordingly !!).   They said it was in the mortgage Deed that the rate could go up but not down !!  I checked it later with my lawyer and this turned out to be a load of b******s !

So robmct you should be a happy man !!! 

Hi Guys

Thanks for info, i would say im lucky but im not, for last 2 years i have been paying 6.24%, mortgage  doubled,  lets just hope rates dont move for another year or 2..

So 1.9% + 1.65 Halifax rate 3.55%, could be worse lol

cheers

Rob

Rates will PROBABLY stay in downward trend for a while yet - but what goes down must come up and depending on what happens with the global economies I think we could see rapidly escalating interest rates in 12 to 18 months

12 - 18 months would be good,  hopefully sell by then :-)  - i know, a lot of hoping lol

Cheers

Rob

My mortgage reset at 3.75 in April - a bit higher than I was expecting and I suspect the bank (CajaSur) have a minimum rate clause which has kicked in. I think Euro rates will stay low for years as economies struggle to recover and indebtedness remains high.  The only thing I could see changing that is if govt. borrowing balloons to such an extent that the bond markets revolt and start to demand higher rates.

european rates will all be fairly similar mortgage wise, econony wise rates cant really be pushed up in my opinion for atg least the next 12-18 months, that said ...if they do they will creep up slowly by 0.25% every couple of months, but Smiley has it right in that when rates (base) are so low there is only one way to go.

An attractive fixed rate ....if on offer may be worth considering?