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Mortgages

2.5% LESS MORTGAGES WERE SIGNED IN JUNE AND FOR 3.7% LOWER AMOUNTS THAN IN 2018

  • In June 2019, 29,900 mortgages were registered in Spain, 2.5% less than the previous year, with an average amount of 119,964 euros, 3.7% below 2018.
  • The average interest rate for home mortgages was 2.57%, compared to 2.65% the previous year.
  • Fixed mortgages reach 44.5%, historical maximum.

During the month of June the number of new mortgages decreased by 2.5% compared to 2018, and the amount of mortgage loans decreased by 3.7%, according to the data provided by the National Statistics Institute in its latest report, which collects data from June 2019.

The average interest rate for home mortgage loans was 2.57%, compared to 2.65% a year earlier, with an average repayment term of 24 years.

On the other hand, 55.5% of the signed mortgages were at a variable rate and 44.5% at a fixed rate, reaching the later a historical maximum.

With respect to 2018, the autonomic communities with the highest growth rates in housing mortgages are the Valencian Community (16.9%), Murcia Region (12.0%) and the Basque Country (9.3%).

The comparison site monmia explains that all these indexes, both the number of mortgages, as well as their amount and the interest rate show a conservative trend, the result of an increasingly demanding and more informed consumer. However, for the data of this month of June in particular, the key factor is attributed to the recent entry into force of the new legislation on mortgages.

They recall that one of the novelties is that banks must provide further information during the mortgage management process, which undoubtedly slows the process and most likely has had an impact on the number of signed mortgage loans. On the other hand, a stricter law tends to rule out more risky transactions, which may have had an impact on the average mortgage loan.

monmia data shows that the number of queries related to mortgages surged by 83% from June to July, so hopefully a more positive trend for next month National Statistics Institute report could be expected.

Also, this is an opportunity to help customers have information ready for their banks. There is a requirement to make information more comprehensive and get this data from customers. That is monmia is working now with partners in the industry to catch information in a more streamline way.

By Steven Myers

Retail finance expert.

Descargo de responsabilidad:
Este artículo es meramente informativo y no debe tomarse como un asesoramiento formal. Es importante leer con detenimiento las condiciones de cada producto antes de contratar y buscar la ayuda de un asesor profesional en caso de duda. Para los préstamos personales, es importante calcular el total a devolver, y en el caso de inversión, se debe tener en cuenta que las fluctuaciones del mercado pueden suponer un riesgo de pérdida sobre el capital invertido.