The European Central Bank recently approved a new measure that will lead to an increase in interest rates. This will go into effect this week, specifically on September 14th, and it will be the highest increase in the last 23 years, reaching 1.25%.
The increase of 0.75 points in this value affects the Euribor, which is the reference index for the average interest rate of financial institutions that lend money on the market. There are families who will notice this index in their mortgages, which already happened in July and it involves making new calculations to find out how much they will have to pay in installments.
On average, rising interest rates should cause a rise 178 euros on average in these taxes. In order for users to find out exactly how much they will have to pay, they can use the Bank of Spain simulator, available in web browsers and iOS and Android application stores.
How to calculate the mortgage payments with the simulator?
- Log in to the Web site of the simulator of the Bank of Spain.
- There, users must complete the required information: the initial capital, the interest rate, the repayment terms, etc.. You can also add information about the next interest rate and select the year or month in which the rate changes.
- Once the boxes are filled, click ‘To calculate’ and let the web give you the results.
- The tool can also be used for compare between different loanssomething very useful if you are considering between different entities offering loans.
Other online simulators
The Bank of Spain is not the only one to have an online simulator to calculate these mortgage variations. Families can also use the Spanish Mortgage Association, which is used to make estimates on the duration, the amount, the interest rate and the monthly payment to be paid on the loan.
In addition, bank apps or websites also have simulators. Therefore, citizens can contact the entities of which they are customers to find out any variable relating to their mortgage.