Mortgage credit: What is the reference month for the revision of the installment?

If you have a mortgage loan, know which month is the reference when reviewing your installment.

As explained by DECO PROteste, in mortgage credit, the average Euribor considered for the purpose of revising the variable rate credit contract (3, 6 or 12 months) is that of the month prior to the signing of the credit contract.  

In other words, if you signed the contract with the bank in October, the average considered will be that of September. Although, normally, the month of the contract with the bank coincides with the signing of the deed, the first can occur up to 30 days before the second," explains the consumer defense organization.

In other words, "in a case where the deed took place in October, but the contract with the bank was finalized in September, the average Euribor used as reference will be that of August".

In summary: the date to consider is always the signing of the contract with the bank. This information can be consulted in the European Standardised Information Sheet (ESIS) that accompanies the financing contract," reads the organization's conclusion.

But let's remember, what is the Euribor?

But let's remember then: the Euribor "is a variable indicator that reflects the interest rate at which banks lend money to each other in the Eurozone".

"Obtained through the averages of interest rates announced by 52 major European institutions, this benchmark is defined daily by the European Banking Federation. The Euribor directly influences the value of the monthly home loan installment. When the Euribor rises, the installment increases; when it falls, the installment decreases," reads on the organization's website.

Read also: What impact have the drops in Euribor had on housing payments?

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