Further Increase in Spanish Mortgages Approvals
April 26th, 2010
The number of Spanish mortgages issued rose again in February, an 8.5% year on year increase, up to 54,813 mortgages and representing an increase of 6.2 percent compared to January 2010, which itself had a 2.3% monthly rise.
According to the data, released today by the National Statistics Institute (INE), the average mortgage was 118,185 euros, which represents a decline of 4.6% year on year. However, the amount borrowed reached 6,478 million euros, representing 3.5% more than the same month last year.
Savings banks in February were again the entities that granted more mortgages, accounting for 51.3% of the total mortgages issued, followed by banks, with 37.9%, and other entities, with 10.8%. However, in terms borrowed capital, the banks took the lead and accounted for 46.1% of the total, while savings banks provided 43.2% and others, 10.7%.
The average interest rate for all of the mortgages that were issued in February was 3.97%, representing a substantial annual decrease of 26.5% and a 2% drop compared with January. Savings banks offered an average interest rate of 4.13% and an average term of 22 years, while in banks, the average interest rate stood at 3.81% and the term was 21 years. According to the INE data, 95.7% of Spanish property purchases in February will be referenced to a variable interest rate, while only 4.3% used a fixed rate.
Related Posts
- Issued Mortgages Rise For First Time In 18 Months
- Banks Relucatant to Refinance Mortgages with Public Money
- Time Running Out for Tax Relief on Spanish Mortgages
