Mortgages grow 9.5% in September

Mortgages grow 9.5% in September


The signing of new mortgages for the purchase of a home again grew by 9.5% year-on-year in September and reached 32,457 contracts, the highest figure so far this year, which is not yet affected by the commotion organized in around the tax of documented legal acts.

According to experts consulted by Efe, these data may not reflect the current situation of the mortgage market, because in September the possible effects of the sentence of the Supreme Court on the payment of the tax (IAJD) and the subsequent response of the Government through a royal decree law were not yet seen.

Therefore, they add, it is possible that "in the last three months of the year" there is a slight adjustment, because banks are already transferring the amount of tax to the cost of mortgages.

And the uncertainty will continue in 2019, since "the new Mortgage Law, still awaiting approval, contains measures that could introduce tensions in the financial system," experts at pisos.com explain.

From Fotocasa consider that although it is early to know if banks are transferring these expenses to customers, the truth is that some may be assuming not only this tax but also other costs, in an attempt to differentiate itself from the competition, given the proximity of the closing of the 2018 accounts.

Experts also recall that the interannual increase registered in September by mortgages on housing is the sixth consecutive and highlight that 40.1% of these contracts have been referenced to a fixed interest rate.

According to the provisional data published today by the National Institute of Statistics (INE), the average amount of mortgages for housing registered that month in the records of the property was 127,732 euros, 4.1% higher than the corresponding to September 2017 and 4.3% more than in August.

In total, the capital that Spanish entities lent their clients in September to acquire a home reached 4,145.8 million euros, 14% more than a year before and almost 18% more than the previous month.

For the spokesman of the Spanish banking association, the AEB, José Luis Martínez Campuzano, these data show "the consolidation in the market towards growth rates consistent with economic developments and under very favorable financial conditions".

They also reaffirm the importance for Spanish families of having their own home, so the mortgage market must work according to "clear and stable rules over time," adds Martínez Campuzano.

For the acquisition of all types of properties -rural, urban and housing-, financial institutions lent 6,573.7 million euros, 15.4% more than a year ago and 16.7% more than the previous month.

If the nature of the farm is taken into account, the mortgages constituted on dwellings accounted for 63.1% of the total capital that was lent in September.

As for the interest rate used in these contracts, for those constituted on the total of farms, the average rate at the beginning was 2.64%, 1.5% less than a year earlier, and the average period was 23 years.

In the mortgages constituted on housing, the average interest rate was 2.59%, 8.3% less than the same month of 2017, and the average term, of 24 years, according to this data, which adds that a 59.9% of these loans are referenced at a variable rate, and 40.1% at a fixed rate, which grew by 16.7% year-on-year.

The Euribor is the rate at which the highest percentage of mortgages at a variable rate is referenced, both before the change (76.9%) and after (69.3%).

By Autonomous Communities, those with the highest number of mortgages constituted on housing in September were Madrid (6,530), Andalucía (6,282) and Cataluña (5,246).

The communities with the highest annual percentages of variation were La Rioja (67.4%); Extremadura (34.4%) and the Principality of Asturias (26.7%), while those in which more capital was lent for the creation of mortgages on homes were Madrid (1,219.5 million euros); Catalonia (758.9 million) and Andalusia (654.5 million).

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