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Mortgage interest rates fall, new lending down

euribor spanish mortgage

All the latest Euribor and mortgage news for November 2013.

Euribor (12 months) ended November at with a monthly average of 0.507pc, down a fraction on the 0.541pc for September, and 13.8pc lower than the same time last year.

As a result annually resetting mortgages with no minimum rate clause will see monthly repayments fall by an average of 10 Euros / month, or 120 Euros / year.

Euribor is falling again after the European Central Bank slashed interest rates from 0.5pc to 0.25pc, another all-time low. Before that it looked like Euribor was on the up after a change in the cycle, but the base rate cut has thrown that into doubt.


New mortgage lending plunges 31pc

Base rates might be falling, but new mortgage lending in Spain isn’t reacting to the medicine. New mortgage approvals dropped an annualised 30.9pc in September, although on a monthly basis lending rose 22.3pc. There will be no general recovery in the Spanish housing market until mortgage lending returns to normal.

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