Euribor rate

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j4mes
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Euribor rate

Postby j4mes » Tue Jun 10, 2008 1:58 pm

Hi guys,

I am currently deciding on whether to purchase a house (I have found one we like, and am in the process of making an offer).....

I have been offered a mortgage of euribor plus .6% which I understand is quite reasonable, however the Euribor is currently at 5.4% (I'm told this is a record high) which of course makes the repayments expensive...

Question is......What do people think will happen to the rate? will it continue to rise? is it likely to drop?....I'm not looking to make a decision based on the info received here, merely after some objectional views...

Your thoughts would be appreciated....

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malagaman2005
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Postby malagaman2005 » Tue Jun 10, 2008 2:34 pm

I may be totally wrong but I would think this is a tad high. Our mortgage, taken out last April with Cajasur, is set at euribor + 0.25 % and I thought that was about the norm but perhaps in the current financial climate the rate offered to you is now the 'norm'. We were hoping to change ours for a long term interest free period but it's looking less unlikely these days.
" If at first you don't succeed then skydiving is not for you"

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Kmoppz
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Postby Kmoppz » Tue Jun 10, 2008 3:29 pm

How easy is it to re-mortgage in Spain? Forgeting the current banking problems)

anyroads
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Postby anyroads » Tue Jun 10, 2008 10:21 pm

"How easy is it to re-mortgage in Spain? Forgeting the current banking problems)"

alas, the banks won't forget ! That is the whole point.

anyroads

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Colinm
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Postby Colinm » Tue Jun 10, 2008 10:21 pm

my preference would be for a rate tracking the ECB rate (currently 4.0%), although it is difficult to get, because of the current market fluctuations.
It should be possible to get a rate of ECB + 0.6%, though you may have to wait until the 'credit crunch' gets sorted.

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Kmoppz
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Postby Kmoppz » Wed Jun 11, 2008 7:19 am

anyroads wrote:"How easy is it to re-mortgage in Spain? Forgeting the current banking problems)"

alas, the banks won't forget ! That is the whole point.

anyroads


I have an excellent credit rating, so if mortgages are available at a price, I'm sure I would get one. What I meant was, how easy is the process, I have no idea as I have never re-mortgaged in Spain?


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