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.
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