MORTGAGE NEWS: Base rates sink in October

euribor spanish property mortgage october 2015

Euro mortgage base rates hit an historic low in October, reducing monthly repayments for many borrowers in Spain.

12-month Euribor – the rate used to calculate most mortgage repayments in Spain – fell to a new historic low of 0.128 in October, a percentage decline of 16.9% in a month, and 62.1% in a year, reducing monthly mortgage repayments for many borrowers in Spain.

Monthly repayments on annually resetting mortgages will fall by €8.95 a month, and €107 a year in the case of a €100,000 loan with 25 years left to run.

euribor spanish property mortgage october 2015

MORTGAGE LENDING UP

The number of new mortgages inscribed in the property register rose by 26% to 19,272 in August, according to the latest figures from the National Institute of Statistics (INE). New mortgage lending rose 58.3% in the Valencian region, but fell 2.1% in the Balearics.

The average loan value in August was €104,318, almost the same as the same month last year. 89% were variable-rate mortgages.

Year-to-date, new mortgage lending is up 21.8%, with volume up 25.6% and value up by 3.2%.

About SPI News Feed

SPI News Feed provides general news about the Spanish property market and related articles translated from the Spanish press. For more in depth news, analysis, and opinion, see Mark Stücklin's blog.

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