2017: The Year When Spain’s Mortgage Market Recovery Consolidated

Spanish mortgages marketSpanish mortgages market

J.L.M Campuzano (Spanish Banking Association) | Mortgage financing grew 9.7% in 2017, although in terms of borrowed capital the rise was much higher at 16.6%. So it can be seen that the recovery in the mortgage market is consolidating after the strong adjustment suffered during the crisis. The figures released by the National Statistics Institute  on Wednesday show growth of 7% in mortgaged properties over the last year. But the biggest growth was in home mortgages, with a rise of 9.7%.

The figures from December show an anual 3.6% decline in the number of mortgaged properties, but a similar trend to that of a year earlier in the case of homes. Of the total capital borrowed in December, 61.6% was earmarked for financing homes. Then out of the new home mortgages, 62.5% were at a variable interest rate and 37.5% at a fixed rate. In December, fixed rate mortgages saw a 4.9% annual increase.

It’s important to highlight the favourable financing conditions offered by the banks for Spanish households making the key decision to buy a home. The average initial interest rate is 2.73%, with an annual decline of 13.5%. The average duration of the mortgage is 23 years. The average interest rate for variable rate mortgages is 2.54% and 3.13% for those on a fixed rate.