Mortgage Rates and Euribor don't seem to tie up

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25 Sep 2010 12:00 AM by michaelwr Star rating. 96 forum posts Send private message

Hello,
       I have the Polaris/CAM mortgage. My understanding is this is based on 6 months Euribor + 1.1%, this would be reviewed annually after 18 months and they use the Bank of Spain Euribor rate from two months previous. BoS refers to http://www.euribor-rates.eu/euribor-rate-6-months.asp

I was surprised to notice this has changed recently and although not much it made me review earlier rates which appear higher than expected. Even though it may just be 0.25-0.3% out, I'm keen to get this fully understood.

I contacted CAM via eChat and no luck was referred to a branch. Before I go down the email the branch route and to check my understanding does this lot below make sense.

                                        Review  Date            Mort Rate   Expected Euribor  Actual Euribor (2m prior)
Initial                               20/08/2008                 6,10%        5,1%                      5.126              
18 month                         28/02/2009                 4,50%        3,4%                      3.03
Annual                             01/03/2010                2,34%        1,24%                    0.99
why not annual?              02/08/2010                2,35%        1,25%                    0.99

 Anyone noticed something similar or have an explaination?

Date Interest Rate
20/08/2008 6,10%
28/02/2009 4,50%
01/03/2010 2,34%
02/08/2010 2,35%




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25 Sep 2010 6:05 PM by darren.wilkes Star rating in Bolton/Vegas. 747 forum posts Send private message

darren.wilkes´s avatar

I believe they are based on the 3 month Euribor rate, rather than the 6 month Euribor rate.

I have the same deal with CAM, 1.1% over. I completed in June 2008 and my first review was Decelmber 2009. They used the October 2009 3 month Euribor (1.243%) Plus 1.1, giving me a payrate of 2.343%

This ties in with the rates on this web site (use the last Column) http://www.bde.es/clientebanca/tipo/referencia/temas/tipos.htm

Think reviews are annually after your first review, so I will be looking closely at next months Eurobor rate, as they will enable me to calculate next years payments.



_______________________

Darren - Founder Member of the Half Empty Crew, Corvera Test Pilot, Winner of La Cata Raffle, Keyholder for the Football Pitches & NOT the Condado burglar!

 



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17 Oct 2010 5:33 PM by michaelwr Star rating. 96 forum posts Send private message

Just for an update CAM have stated the mortgage is based on Euribor 1year, using 1 month average taken 2 months before the required date. The reason for the recent change is as a result of moving from I/O to repayment so recalc'd as new event. 

This ties up closer with my figures and maybe makes sense if the mortgage is reviewed annually.




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