The latest Spanish mortgage and Euribor news
Euribor (12 months), the interest rate normally used to calculate mortgage repayments in Spain, fell to 1.37pc in April, 34pc lower than the same time last year.
As a result, repayments on a typical 25-year, €150,000-mortgage resetting now will go down by around €50/month or €600/year.
But cheaper borrowing costs only apply to those who already have mortgages. New lending collapsed 47pc in February, the 22nd consecutive month of falls, according to the NIE. Increasingly, the only buyers in the market are cash buyers.
Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on firstname.lastname@example.org.
|TAYLOR WIMPEY, Mallorca, Costa Blanca & Costa del Sol|