The transition to the new euríbor for mortgages come in the first half of 2017


For more than two years ago, the EMMI (European Monetary Institute Markets) working on a new Euribor -the rate at which they are referenced most mortgages in Spain; a new mortgage index for the euro area. The deadlines are extended and aunqueestaba expected that the trial period will begin in July, the transition to the new euríbor arrive in the first half of 2017.
The EMMI has revised its schedule of implementation with the aim of moving towards a euríbor whose reference is based on the actual transactions, following the recommendations of market players, financial regulators and consumers. On October 30 the agency gave interested parties a document with a series of proposals to determine the methodology of the new index, which will apply in most mortgages.
Thus, the general secretary of EMMI, Guido Ravoet said that stakeholders had shown "widely receptive" with the direction it was taking euríbor reform, but admitted are "challenges" to be faced. "In the coming months we will refine some aspects of the proposed methodology," says Ravoet, adding that the query is part of the period prior to the implementation of the new system test referenced in actual transactions. In addition, they will continue to work with stakeholders and government agencies to "ensure continued support" to the proposed reforms.
The review of methodological system for calculating the Euribor occurs in a context in which the index has reached negative levels in recent months for the first time in history.
"The limit of a loan is that you get it for free"
The president of the Spanish Banking Association (AEB), José María Roldán, has argued that a credit contract, such as a mortgage, is characterized by lending money in exchange for an additional amount and considered that the limit "probably" going through that the debt does not have to pay anything before the historic fall of the Euribor negative territory.
"The limit is you do not have to pay anything and the loan you get it free" has ruled Roldan told a prey to the possibility that banks will have to reduce the mortgaged the pending return capital, which in practice translate to the bank pays for granting mortgages. Therefore, it has ensured that the impact of negative euríbor is "very limited", since few customers affected are the difficulty that the fall of the benchmark compensate differentials mortgages.