Mortgage base rates in the Eurozone dropped to another record low in October 2017, whilst the latest data shows new mortgage lending rising for another month in August.
12-month Euribor – the rate used to calculate the majority of mortgage interest payments in Spain – came in at -0.18 in October, compared to -0.168 in September, a percentage difference of 7.1% (and 143% compared to the same time last year)
As a result, borrowers in Spain with annually resetting Spanish mortgages will see their mortgage payments fall by around €6 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.
The latest figures for new residential mortgage lending from the National Institute of Statistics show lending up 29% in August.