Euro Mortgages get cheaper

inspector_monkfish

09:03 31Jul09 -Euro zone mortgage loan rates fell in June - ECB

FRANKFURT, July 31 - Interest rates on most euro
zone household and corporate loans fell in June, European
Central Bank figures showed on Friday.

The average interest rate on a new floating rate mortgage --
the type which accounts for about two-fifths of new mortgage
borrowing -- fell to 3.13 percent from 3.22 percent. Rates on
mortgages fixed for over 10 years, the second most common type
of home loan, decreased to 4.57 percent from 4.58 percent.

The ECB said interest rates charged on business overdrafts,
the main source of new corporate borrowing, fell to 4.58 percent
in June from 4.67 percent in the previous month.

Rates on business loans with a fixed rate for up to one
year, the next most common type of lending, fell to 3.64 percent
from 3.73 percent for loans of up to and including 1 million
euros. But for larger sums rates rose to 2.56 percent from 2.48
percent, the first rise since July 2008.

Following is a summary of the ECB data on interest rates
offered on new deposits, overdrafts, loans and mortgages across
the countries which use the euro as their national currency.

June 09 May 09 June 08
(annual percent rate)
HOUSEHOLDS
Overnight deposits 0.56 0.61 1.24
Bank overdrafts 9.56 9.62 10.63
Mortgages, <1 year fix 3.13 3.22 5.48
Mortgages, 1-5 year fix 4.05 4.13 5.11
Mortgages, 5-10 year fix 4.51 4.50 5.08
Mortgages, >10 year fix 4.57 4.58 5.20

NON-FINANCIAL CORPORATIONS
Overnight deposits 0.66 0.76 2.07
Bank overdrafts 4.58 4.67 6.67
Loans, <1 mln euros, <1 year fix 3.64 3.73 6.16
Loans, >1 mln euros, <1 year fix 2.56 2.48 5.35

For the full report, see:
http://www.ecb.int/press/pdf/mfi/mir0906.pdf



UK BASE RATE = 0.50pct
EZ BASE RATE = 1.00pct