A summary of the Latest Euribor and Spanish mortgage news

Euribor (12 months), the interest rate mainly used to calculate mortgage repayments in Spain, fell to 1.507pc in December, from 1.541pc in November (-2.2pc).

On an annualised basis, Euribor is by 21pc compared to the end of last year. That means higher monthly repayments for borrowers with mortgages resetting now.

As a result of the latest increase, repayments for a typical mortgage (150,000 Euros, 25 years, Euribor +0.5) will go up by 20 Euros /month, or 240 Euros / year.

New Mortgage Lending Collapses

The big news of the month was October’s collapse in new mortgage lending, which fell by an annualised 24pc (to 39,542), and by 25pc compared to September, according to figures from the INE.

This is the sixth month in a row that new mortgage lending has fallen, a clear sign of trouble for the market. New mortgage lending has been falling since July, and the latest fall comes on top of a slump of 16pc in September.

The average residential loan value in October was 111,368 Euros, down 2.7pc over 12 months and down a startling 6.8pc compared to September. Significantly fewer, smaller loans means a lot less money chasing property, putting further pressure on prices.

Total new residential mortgage lending in October was 4.403 billion Euros, down 26.4pc in a year.

The average new mortgage interest rate was 3.74pc, down 10.7% in a year but up 0.3% in a month.