Euribor heading down, new lending collapses, mortgage costs up

A summary of the Latest Euribor and Spanish mortgage news

Euribor (12 months), the interest rate typically used to calculate mortgage repayments in Spain, fell to 1.837pc in January, a percentage change of -8.6pc on a monthly basis, but +18.5pc on an annualised basis.

As a result, repayments for the average €150,000-mortgage resetting now will go up by around €240/year.

Analysts expect Euribor to remain stead or fall slightly for the rest of the year, in line with the ECB’s 1pc interest rates.

New mortgage lending slumps again

Low interest rates sound like good news for borrowers, but only if they can get a mortgage. Unfortunately, it’s never been harder to get a mortgage in Spain, as the chart below shows. The number of new mortgages signed collapsed an annualised 35.8pc to 28,113 in November, just a fraction above September’s contemporary low.

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