MORTGAGE NEWS: Euribor interest rates negative for third consecutive month

spanish mortgage interest rate

Eurozone mortgage base rates in April spent a third consecutive month in negative territory,, though borrowers are unlikely to enjoy much of a benefit (and savers certainly won’t).

12-month Euribor – the rate used to calculate most mortgage repayments in Spain – came in at -0.01 in April, up from -0.013 in March, meaning another month of negative Euribor interest rates.

Compared to April last year, when it was 0.18, Euribor was down by 105.6%, though on a monthly basis it was up 16.7%.

In the short term it should mean that existing borrowers with an annually resetting mortgage (and no floor clauses) will see their mortgage payments fall by around €10 per month for a typical €120,000 loan with a 20 year term.

spanish mortgage interest rate

MORTGAGE MARKET

The number of new residential mortgages inscribed in the Property Register in February was up an annualised 15.9% to 24,887, reveal the latest figures from the National Institute of Statistics (INE). That shows that demand for new mortgages is still increasing at a good rate. New mortgage signings have increased for 21 consecutive months based on the INE’s figures.

The biggest volume of new mortgage loans was in Andalusia, followed by Madrid and Catalonia.

GUIDE: Everything you need to know about mortgages in Spain

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