Mortgage base rates in the Eurozone dropped to another record low in September 2017, whilst the latest data shows new mortgage lending rising for another month in July.
12-month Euribor – the rate used to calculate the majority of mortgage interest payments in Spain – came in at -0.168 in September, compared to -0.156 in August, a percentage difference of 7.7% (and 195% compared to the same time a year before)
As a result, borrowers in Spain with annually resetting Spanish mortgages will see their mortgage payments fall by around €5.70 per month for a typical €120,000 loan with a 20 year term.
The following chart illustrates how interest rates are currently a long way from normal.
New residential mortgage lending was up 6.7% in July to 20,730, according to the notaries, with an average loan value of €127,382 (down 10.8%).