Loan And Mortgage Information

Likely ECB rate cut of 0.5%

by admin on 08/04/09 at 12:46 pm

Entries corridor confirmed by European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, say a cut in cost of borrowing by 0.5%.
It would rise from 2% to ‘1.50%.

Although the news was not especially real estate loans, now with the introduction of new loans linked to this rate, a cut of 0.5% lead:

• Today, the floating rate loans anchored to the ECB rate has averaged a rate of 3.5% finished, which would fall to 3% if the cut will be confirmed.
• although it is a variable rate, the ECB is a much more stable index of the classic euribor. Those who choose this loan, therefore, will be protected from continuous variations of the installment of its loan.

In the coming days we will know whether the cut will happen, stay online, I will update.