This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
A summary of the Latest Euribor and Spanish mortgage news
Euribor (12 months), the interest rate normally used to calculate mortgage repayments in Spain, rose to 2.11pc in October (chart above), a percentage increase of 2.1pc on the previous month.
Over 12 months Euribor was up 41.1pc (chart below), which means higher monthly mortgage payments for those with annually resetting Spanish mortgages. Average mortgage repayments will rise by around €45/month, €540/year.
The next chart illustrates that, despite recent increases, Euribor is still close to historic lows. Markets expect it to continue rising, albeit at a very subdued rate.
New Mortgage Lending
New mortgage lending is the lifeblood of the housing market without which most Spaniards cannot afford to buy homes. So it is particularly worrying that new lending fell 49pc in August compared to a year before, the lowest level on record for this data series published by the Statistics Institute (INE). New mortgage lending has now fallen for 16 consecutive months, suggesting that the credit crunch is still alive and well in Spain.
The average new mortgage value in August was €106,922, 12.6pc lower than a year before.
