Written by Consuelo R from Prada

The changes that are looming in the mortgage market

The arrival of autumn will also bring some changes in the mortgage market. We refer to New benchmark for some mortgages which, in principle, will come into force next 1 of November.

On that date, The Mortgage Loan Reference Indices (IRPH) will no longer be in force, of savings banks, banks and the active reference rate of savings banks (CECA). And at what rate should those who have the IRPH in their mortgages be complied with? The replacement was expected to be the IRS, but, according to El País, The Ministry of Economy has introduced an amendment in the Law to Support Entrepreneurs, which creates a new index. So, It will be taken as Reference the IRPH of entities, Which does survive, but To which a differential will apply that will result from the arithmetic mean of the difference between the index that disappears and that IRPH of entities.

Obviously, Will be able to benefit from the euríbor those who have it contemplated in the writing of their mortgage or resort to the alternative index they have set. In case they do not have any, they will take the new one. And for those who already have the Eurib, everything remains the same, at least for the moment.

And what about the famous IRS Which we talked about in a post almost a year ago. Then the idea was that this new index was the substitute for being considered more even. But now it seems that the IRS it loses prominence, perhaps because, like the Euribor, it is a lower index than the IRPH of entities. Some people disagree And ask that it be replaced by the Euribor that at the moment is around the 0,5%, well below Of the index Of banks or boxes that exceeds 3%.

We will be attentive to see and to tell how it is finally.

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