Staff Reporter
AMONG the many factors that have contributed to the recent cost-of-living crisis in Spain is the rise in interest rates, which has jacked up the cost of monthly repayments for millions of mortgage holders across the country.
There could, however, be some respite on the way, according to central lender the Bank of Spain.
In a report it published last week, and which was reported in online publication El Economista, mortgage repayments are likely to start to fall from March of this year onward, meaning Spanish households should benefit from some extra money in their pockets.
According to the Bank, interest rates are likely to fall from the third month of the year. This in practice will mean that holders of variable-rate mortgages should see a reduction in their monthly repayments from this month onward.
The catch is that mortgage holders will have to wait until the month when their interest rates are revised.
This happens on a yearly basis, so those who, for example, took out their mortgages in December will still have to wait until the end of the year to see any benefits, even if interest rates fell earlier.
Read more:
- Borrowers in Spain face rising mortgage repayments as Euribor shoots up
- Spanish mortgage victory leaves British couple with €15,000 in their pockets thanks to bank compensation payout
