The Bank of Spain has noticed the changes that have occurred in the way in which the Spanish finance the purchase of a home, since although mortgages were traditionally built at a variable rate, fixed rates have begun to grow.
And is that mortgage loans that have a section of review of interest rates up to a year have gone from representing between 80% and 90% in 2010, to just 50% today.
This is evidenced by the Bank of Spain in the study published today "Recent changes in the terms of review of the interest rates of new housing loan transactions," in which he emphasizes that Spain is located, within The Economic and Monetary Union (EMU), in the group of countries where the importance of variable rate financing is higher.
However, since the beginning of 2010, it has been observed in Spain "a loss of weight of new loans, in which the cost is revised before one year," he added.
In this sense, the Bank of Spain asserts that in the first stage, until the middle of 2015, there was an increase in the proportion of loans with initial periods of fixing the interest rate between one and five years, but later " Has begun to grow the segment of more than five years, which includes fixed rate contracts. "
The agency has explained that this change in mortgages has been accompanied by a reduction in the differential between the interest rate applied to loans at fixed and variable rates (conditions are renewed in less than a year), "which has been able to encourage The demand of the borrowers of the first modality ".
Lastly, the body headed by Luis Maria Linde has indicated that the "more relevant, longer-term" implication of the change in the structure of the mortgage market is that household financing costs become less sensitive to movements in Interest rates, thereby limiting the scope of the impacts associated with monetary policy decisions.