Laurence Dollimore
MORTGAGES are set to become less of a burden for millions of families this year, the Bank of Spain has said.
Governor Pablo Hernandez de Cos said on Thursday that the European Central Bank (ECB) is set to reduce interest rates – unless there is an unexpected shock.
This, he said, will have a particularly positive effect on those with variable mortgages.
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During a speech at the CUNEF university, he added: “In fact, this has already been incorporated into the one-year Euribor and mortgages in Spain are going to begin to see some relief in terms of the burden paid by families who had it at a variable rate.”
He insisted that the relief would not be immediate and there was ‘still some time’ before homeowners see a reduction in their monthly payments.
The ECB predicts that inflation will continue to fall this year, before reaching around 2% between 2025 and 2026.
De Cos added: “It is true that we are not being explicit about when it will occur, I believe that there is still some time left for that, but I also think that it is very important to emphasise that the inflation objective of the European Central Bank is 2%.”
