MORTGAGE NEWS: Euribor down in May, lending jumps in March

Mortgage base rates in the Eurozone fell to another record low in May, whilst the latest data shows new mortgage lending jumped 20% in March.

12-month Euribor – the rate used to calculate most mortgage repayments in Spain – came in at -0.127 in May, compared to -0.013 a year ago.

As a result, borrowers in Spain with an annually resetting Spanish mortgage will see their mortgage payments fall by around €6 per month for a typical €120,000 loan with a 20 year term.

NEW LENDING JUMPS IN MARCH

New residential mortgage lending rose by 20.2% in March compared to the previous year, show the latest figures from the INE.

New mortgage lending has risen strongly every month this year with the exception of February, in another sign of the continuing recovery of the Spanish housing market. New mortgage lending is one of the drivers of the recovery.

The value of the average residential loan rose by 6.4% to €114,469, and the average interest rate rose to 3.23%. So despite the fall in Euribor, new mortgage interest rates are on the rise after two years of declines.

About Mark Stücklin

Mark Stücklin is a Barcelona-based Spanish property market analyst, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008).

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