The Euribor breaks the psychological barrier of -0.40% in its monthly rate

The Euribor breaks the psychological barrier of -0.40% in its monthly rate

The indicator already reaches this level after accelerating the falls in its daily rate

The ECB confirms that it will approve new stimuli in December

The Euribor, the index to which most mortgages are referenced, is now at -0.404%, a new all-time high.

  • The Euribor reaches this level in a monthly rate after accelerating the falls below the -0.40% level in the last week. Last Friday, the Euribor hit a new daily low, standing at -0.429%.
  • If it closes at this level, it will make the mortgages that are reviewed cheaper again, since in September 2019 the index closed at -0.339%.
  • The forecasts that are handled place the Euribor in negative for a long period of time, at least beyond 2022. Furthermore, it could move around -0.3% beyond that date.

Another phenomenon that is repeated this month is that of free mortgages. Those mortgaged with 0.250% Euribor loans will see their installment reach a lower limit. “Those who have to review their loan this month will see how they pay the lowest possible installment within their loan,” he explains Simone Colombelli, director of mortgages at iAhorro.


“The bank does not return money, although the Euribor is lower than its differential, but they will not be paying interest,” recalls the director of mortgages of iAhorro.

Support the economy

As he European Central Bank (ECB) como la Federal Reserve they will maintain historically low rates to support the recovery.

In fact, at the recent meeting of the American bank, its president, Jerome Powell He promised three years of zero percent rates to support the recovery.

This makes it almost impossible for the ECB, whose rate decisions are somewhat behind the rate Fed, raise rates ahead of time.

The truth is that a negative Euribor should favor the recovery by achieving cheaper financing for families and companies.

  • The injections of liquidity, by the ECB, with an interest of between -0.75% and -1%, favors that the Euribor remains at historically low levels.
  • However, it represents a challenge for financial institutions that have to offset their interest margins with other means such as increased commissions.

The indicator already reaches this level after accelerating the falls in its daily rate

The ECB confirms that it will approve new stimuli in December

The Euribor, the index to which most mortgages are referenced, is now at -0.404%, a new all-time high.

  • The Euribor reaches this level in a monthly rate after accelerating the falls below the -0.40% level in the last week. Last Friday, the Euribor hit a new daily low, standing at -0.429%.
  • If it closes at this level, it will make the mortgages that are reviewed cheaper again, since in September 2019 the index closed at -0.339%.
  • The forecasts that are handled place the Euribor in negative for a long period of time, at least beyond 2022. Furthermore, it could move around -0.3% beyond that date.

Another phenomenon that is repeated this month is that of free mortgages. Those mortgaged with 0.250% Euribor loans will see their installment reach a lower limit. “Those who have to review their loan this month will see how they pay the lowest possible installment within their loan,” he explains Simone Colombelli, director of mortgages at iAhorro.


“The bank does not return money, although the Euribor is lower than its differential, but they will not be paying interest,” recalls the director of mortgages of iAhorro.

Support the economy

As he European Central Bank (ECB) como la Federal Reserve they will maintain historically low rates to support the recovery.

In fact, at the recent meeting of the American bank, its president, Jerome Powell He promised three years of zero percent rates to support the recovery.

This makes it almost impossible for the ECB, whose rate decisions are somewhat behind the rate Fed, raise rates ahead of time.

The truth is that a negative Euribor should favor the recovery by achieving cheaper financing for families and companies.

  • The injections of liquidity, by the ECB, with an interest of between -0.75% and -1%, favors that the Euribor remains at historically low levels.
  • However, it represents a challenge for financial institutions that have to offset their interest margins with other means such as increased commissions.