What you need to know about IRPH

One of the most common doubts at present is to know what the IRPH is, which stands for Mortgage Loan Reference Index. In other words, this is an interesting alternative that allows us to know the interest we pay monthly on our mortgage. 

IRPH or Euribor?

It is estimated that in Spain the vast majority of mortgages are referenced to the Euribor (nearly 90%), however, we should not forget that the IRPH is present in over a million mortgages, a figure to be taken into account. The main difference between the two is that those with an IRPH mortgage have paid more interest compared to the Euribor, a figure that exceeds 100 euros per month. So, why did you opt for the IRPH considering that it is not a profitable alternative? Simple. A few years ago the banking sector, which we should not forget is responsible for offering mortgages, spoke of personal income tax as a more economic and profitable option compared to the Euribor. Once again, we must stress that the lack of knowledge of the client, as well as the bad intentions of the banks, have been decisive when we talk about the concept of IRPH. 

Those people who have been affected by having a mortgage referenced to IRPH have the possibility of claiming, this being a process that requires the advice of qualified personnel with experience in this sector. Currently, there are many and varied possibilities on the market when claiming IRPH, being a highly recommended alternative if we consider that we are facing quite high amounts. 

In short, the IRPH is an indicator in variable rate mortgages that became very popular in 2008, when the Euribor was at its highest. However, more than a decade later it has proved to be a bad business.

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