Spain’s Fixed Rate Loans Reach 40% of Total Mortgages


26,583 mortgages were granted in august, an increase of 29.1% since the previous year, according to INE data. For the first time in Spain’s history, the fixed rate represented more than 40% of the loans constituted. In the first eight months of the year, more than 200,000 mortgages were granted, an increase of 12.9% year-on-year. The average mortgage granted is 111,488 euros, while interest rates remains at a record lows.

In August the most mortgages were granted since 2011. 26,583 mortgage were signed surpassing by 6.9% those signed in July and 29.1% more compared to August 2016, according to figures from the National Institute of Statistics (INE).

In fact, between January and August of this year 210,439 mortgages have been finalized, which represents 12.9% more than during the same period last year.

These latest statistic highlight the number of mortgages signed under a fixed rate. For the first time in history, the percentage of mortgages signed with a fixed interest rate exceeds 40% of the total on the month. In fact, in August, 40.4% of loans were at fixed rates. This data represents an increase of 55.4% year-on-year.

On average, the mortgages granted amounted to 111,488 euros, at an average interest rate of 2.77% and 23 years.

By region, Andalusia (5,877), Madrid (4,471) and Catalonia (3,987) accounted for the largest number of housing loans, while Andalusians (50.2%) and Madrid residents represented the highest rates of variation (42.9%) to the Galicians (39.2%). The communities in which the most capital waslent were Madrid (695.5 million euros), Catalonia (534.5 million) and Andalusia (504.4 million).

Source idealista. Image Source: Freepik