Mortgage lender reaches highest figure in 12 years in June

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Fixed rate mortgages now account for 73% of all home loans

Home mortgages rose 12% last June compared to the same month of 2021, to 42,767 loans, the highest number in a June since 2010, when more than 56,700 mortgages were signed, according to data released this Friday by the National Institute of Statistics (INE).

With the year-over-year progress in June weakening the number registered in May by more than 12 points, the home mortgage company has chained 16 months of consecutive year-over-year gains.

The average amount of mortgages on residential properties rose by 6% year-on-year to EUR 147,539 in the sixth month of the year, while debt capital increased by 18.7% to EUR 6,309.8 million.

According to autonomous communities, Madrid (8,026), Andalusia (7,918) and Catalonia (6,905) were the countries that registered the highest number of mortgages on houses in June 2022.

Similarly, Madrid (1,799.8 million euros), Catalonia (1,113.3 million) and Andalusia (1,018.1 million) were the regions where the most capital was lent for taking out mortgages on residential properties.

More home mortgages were signed in June in 15 communities than in the same month of 2021, and only Cantabria and Navarre registered declines of 17.9% and 2.1% respectively.

By contrast, the largest increases occurred in La Rioja (+209.9%), Castilla y León (+28.6%), Comunidad Valenciana (+23.3%) and Murcia (+21.9%), and the most moderate were recorded in Andalusia (+1%) and Castilla-La Mancha (+2.9%).

In the first half of the year, the number of mortgages to buy a home increased by 15%, while borrowed assets increased by 25.4%.

In the intermonthly rate (June to May), residential mortgages fell by 3.2%, while loan capital fell by 4.3%. In both cases, they are their largest single-month June declines since 2019.

In the sixth month of the year, the average interest rate for all mortgages was 2.48%, with an average term of 23 years. For residential property, the average interest rate was 2.47%, up from 2.44% a year earlier, with an average term of 24 years.

Last June, 27% of residential mortgages were concluded at a variable interest rate, while 73% were concluded at a fixed interest rate. The average interest rate initially was 2.06% for floating-rate residential mortgages and 2.64% for fixed-rate mortgages.

According to data from the Bureau of Statistics, the number of mortgages on rural and urban real estate (including housing) increased by 11.8% in June 2022 compared to the same month in 2021, to a total of 56,021 loans.

The capital of mortgages issued rose by 20.1% in the sixth month of the year to more than 8,758 million euros, while the average amount of mortgages on all properties increased by 7.4% and gained 156,345 euros.

Last June, a total of 14,412 mortgages changed their terms, a figure 48% lower than the same month of 2021.

Taking into account the type of change in terms, there were 12,014 novations (or changes produced at the same financial entity), with an annual decrease of 48%.

The number of transactions involving a change of entity (subrogations on the creditor) was 1,863, 46% less than in June 2021. For its part, in 535 mortgages the owner of the mortgaged property changed (subrogations on the debtor), 54% less than a year in front of.

Of the 14,412 mortgages with changed conditions, 22.6% is the result of interest rate changes. After the change in terms and conditions, the percentage of fixed-rate mortgages increased from 23% to 49.9%, while that of floating-rate mortgages decreased from 75.4% to 47.5%.

The Euribor is the rate to which the highest percentage of floating rate mortgages relates, both before the change (66.7%) and after (42.7%).

After the change in terms and conditions, the average interest rate on fixed-rate mortgage loans fell by one point and that on variable-rate mortgage loans by four-tenths.

Source: La Verdad

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