A report from the Basque Housing Observatory has measured the impact of the Euribor increase in the Basque Country. For the time being, the rise in interest rates has no effect on the number of mortgages applied for. The average monthly mortgage payment is 720 euros.
The average amount of the mortgage in the Basque Autonomous Community was €163,000 in 2022 13,000 more than in 2019, and the average monthly allowance is 720 euros, 49 euros more than the average in Spain. For example, citizens of the CAV spend 30% of their income on mortgage payments, four percentage points more than six years ago (26%).
This is data published by the Basque housing observatory of the Basque government after measuring the impact of the Euribor – in March it stood at 3.647% – on Basque households. The study confirms, among other things, that the average level of debt differs greatly depending on the location of the home, being considerably higher in Gipuzkoa and Bizkaia than in Álava.
For the time being, the rise in interest rates would not affect the number of mortgages applied for, which shows an upward trend: 12,146 mortgages were taken out in 2013 and 22,905 last year. too early to see the effects of the rise in Euribor on mortgage lending and adds that the consequences of tightening access conditions to credit for households and businesses will be visible throughout 2023.
What is already being observed is a change in the mortgage type: in 2022, more than half of the total number of mortgages issued had already been concluded with a fixed-interest mortgage. Six years ago, 90% was variable rate.
Similarly, the Basque Housing Observatory’s report concludes that this year and next year could see an increase in the number of people required to pay installments in excess of 30% of income, the limit of what is considered acceptable.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
