Euribor in negative values! Probably nobody ever came to think about it a few years ago, but today it is a reality, half-way, but a reality, after all. And I say it is a half-truth, because for now it has only marked negative values some days and the benchmark is a monthly average, so if we do the average of a month, we continue to be positive. That does not remove so that we can get to see a negative monthly value at any given time.
And in that case, what about mortgages? Most of the mortgages have not collected this casuistry, so if we stick to the ones that were signed at the time, if the mortgage has a variable Euribor index plus a spread, if we apply a negative Euribor, still remain positive , Because it is very difficult that the Euribor exceeds the 0,19 that have as a differential the cheapest mortgages that have been granted in this country to the general public.
But if this happens, will they pay us to lend us money? As much as paying us, I would not say, but I would not be surprised that some mortgage rate would be subsidized, because according to the signed, is what should be. If banks acted in "good faith", this should be within normalcy. Another thing is that they do, and we have to wait for a judge to issue a sentence in which it obliges to credit the mortgages in case the sum of the differential and the Euribor comes out negative. Neither did anyone ever think that it was going to be possible to end the clauses on the floor and look where you are, they are not what they were.
Anyway, we are talking about science fiction, it is still a long way until this situation arrives. Before that, we still have to see that they continue to lower the spreads, or to consolidate the hiring of Mortgages at fixed rate. Every day we see how more and more mortgages are contracted under this modality. And it is not strange, it is an optimal solution for both the bank and the client, as they are the Euribor and spreads to this day, since it allows both parties to budget for certain, income and expenses, respectively, to long term.
Above all, personally I think it is very interesting for the mortgaged, since it is not normal for the Euribor to have the current values and the logical thing is that, within a few years, it has values similar or higher than the interest rate to which they are being granted Mortgages at a fixed rate these days and that those who hire a fixed rate mortgage, pay a little more today, but within a time, a little less.
In any case, these are bets, and can go well, but they can go wrong. And fixed-rate mortgages have the advantage that you know how the game is going to come out, and it may be that the variable rate is a bet better or worse, that's the crux of the matter.