Mortgage rates turn down again

Euribor annualised change february 2014

The latest Spanish mortgage and Euribor news

Euribor (12 months) ended February with a monthly average of 0.549pc, down 2.3pc on January, and 7.6pc lower than the same month last year.

The small decline means that borrowers with annually resetting mortgages will hardly notice the difference in the monthly payments. It might mean a saving of around 20 Euros per year on the average mortgage.

On an annualised basis, Euribor has now fallen for 25 consecutive months, and is heading back towards the all-time minimum of 0.484 in May of last year.

Euribor over a decade to february 2014

Mortgage lending: total collapse

Lower mortgage rates are irrelevant if the banks aren’t lending. Last year new mortgage approvals fell to just 197,614, 85pc down on 2006, when that number of new mortgages were approved in just a month and a half.

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About Mark Stücklin

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 ms@spanishpropertyinsight.com.