The one-year euribor has hurt again to a new decimal. The last time the reference rate was as high was more than 13 years ago.
A year euribor broke another new limit on Thursday, when the interest rate was quoted at 2.733 percent. The last time the reference rate was as high was in January 2009.
At the same time, the interest rate hike ended an exceptionally long period of stagnation for this year. The Bank of Finland reports the Euribor to three decimal places. Viewed in this way, the euribor for the year remained at the initial 2.6 for no less than eight days after the withdrawals.
It is characteristic of the interest rate rally of the year that the reference interest rate has remained at the same decimal readings for longer than this only once this year. At the end of May, euribor remained at 0.3 for 10 banking days in a row.
A year euribor is Finland’s most popular mortgage reference rate. Its rise has been historically fast this year. Even at the beginning of the year, the interest rate was 0.5 percent negative. The interest rate has risen by more than 3.2 percentage points in less than ten months.
The mortgage interest rate is typically determined according to the personal margin and the reference interest rate. For this reason, rapidly rising interest rates can significantly increase housing costs when checking the loan interest rate. In loans linked to one year’s Euribor, the interest rate is revised once a year.
The review date depends on the time of borrowing.
You can use the attached calculator to see how the rise in interest rates will affect your loan.
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