The Euribor and the indexes of reference
In the mortgages hired to variable interest, which we remember they usually have period of between 20 to 30 years, the entities will calculate the interests with regard to an index of reference that changes with the evolution of the official price of the money. The election of the index is agreed and the interest rate that we pay, which takes this index as a reference, modifies every agreed period of time, ej. every half year, annually …
Therefore, the reference indexes are a few percentages that are used to update the interest rate that is paid in the mortgages to variable interest. They have official character and it prepares them and publishes monthly the Spanish Bank. Most used there are Euribor, MINT and IRPH.
The Euribor
The Euribor is the type to which the financial institutions lend between themselves on the interbank market of the Euro. It substituted the ancient Mibor, which still makes use for the mortgages signed before January 1, 2000. In fact, the Euribor is defined as the simple monthly arithmetical average of the daily values, of the type published by the European Bank Federation for the deposit operations in euros in term of a year calculated from the offered one by a set of the most active banks and of similar qualification in the Euro area.
Most of the mortgages to variable interest are checked by the Euribor.
MINT
It is an average value of the types applied by the savings banks both to the mortgage loans and to the personal loans.