Fixed rate mortgages represent four out of ten new loans to buy housing

Fixed-rate mortgages now account for four out of ten new mortgages signed in Spain. According to the report of the Statistics Real Estate Registry, the average amount of rates has dropped. Instead, the monthly mortgage rate has increased. They are some of the headlines of the analysis that the recorders do of the mortgages signed in the first quarter of the year.

Fixed interest rate hiring continued to rise sharply in previous quarters, reaching 38.7% of total new contracts, compared to 31% in the previous quarter, a new high in the historical series. This leaves the variable indices at their lowest, and especially the Euribor, which was the reference in 60.3% of total loans. Interest rates on new loans fell to 2.3% The average interest rate on new loans declined slightly to 2.3% from 2.4% in the previous quarter. The contractual terms of the new mortgage loans remain basically stable, with a slight increase of 0.7% over the previous quarter, and an average duration of 23 years and 4 months in the first quarter of 2017.

Accessibility in the purchase of housing showed a slight deterioration: the average monthly mortgage rate in the first quarter was 536 euros, with a quarter-on-quarter increase of 2.2%, while the percentage of said share with respect to the wage cost Increased to 28.3% (27.6% in the previous quarter). Less foreclosures by registrars, first quarter home foreclosure certifications continue to decline, reaching 8,758, with a quarterly reduction of 8.1% (9,533 in the fourth quarter), to a minimum since its inclusion In the study, representing a decrease of 20.9% over the same period of 2016. 61.5% of these certifications correspond to individuals, compared to 38.5% of legal entities.

In terms of nationality, 93.1% of the certifications corresponded to nationals and 6.9% to foreigners. During the first quarter, 1,918 payments were recorded in housing payments, increasing by 27.3% over the previous quarter, although compared to the same quarter of 2016, the reduction was 27.9%. 81.5% of payments in payment corresponded to individuals, compared to 18.5% of legal persons. Regarding nationality, 88% of the dations in payment have been national, compared to 12% of foreigners. Mortgage borrowing for housing has increased by 3.6% over the previous quarter, reaching 116,182 euros.

Source: 20 minutos