December 1, 2020

Mortgages register their lowest growth since 2015

The signature of new mortgages for the purchase of a home stopped his growth up to 2.7% in 2019, the sixth consecutive year on the rise, although it was the lowest rate since 2015 and added 357,720 contracts. According to provisional data published Thursday by the National Statistics Institute (INE), the average amount of these contracts grew by 6% and stood at 125,007 euros, the highest in the last eleven years, since 2008. The value of all loans that were constituted in 2019 reached 44,717.50 million euros, 18.1% more than the previous year. The average mortgage granted in 2019 to buy a home has the following characteristics: an average amount of 122,097 euros, an interest of 2.53% and an average term of 23 years.

In December alone, 30,285 new mortgage contracts were signed to acquire a home in Spain, 43% more than in the same month of 2018, the highest rate since the series began, in 2003, and after four months of fall, explains the INE Also, these contracts increased 3.9% over the previous month, while 56% of them were closed at a variable interest rate, and 44% at a fixed rate.

In total, financial institutions lent in 2019 72,596 million euros in mortgages for any purpose (4.5% more), of which 70,021 million were to finance the purchase of urban farms (4.3% more) and others 2,574 million, to acquire rustic farms (9.4% less). The total mortgage figure stood at 492,594 at year-end, 2.2% more than in 2018.

Type of interest

As for interest rates, only in December, home mortgages were constituted with an average rate at the beginning of 2.53% (3.5% higher than the same month of 2018) and an average term of 23 years . The total number of mortgages with changes in their conditions registered in the property records was 5,400 in December, 13.3% more than in December 2018, adds the INE. Based on the exchange rate in the conditions, in December there were 4,031 novations (modifications agreed with the same financial entity), 13.3% more. The number of operations that change entities (subrogations to the creditor) decreased by 8.7%, while the number of mortgages in which the owner of the mortgaged property (subrogations to the debtor) changes increased by 125.6%.

Throughout the year, the communities with the highest number of mortgages constituted on dwellings during 2019 were Madrid (69,616); Andalusia (67,845) and Catalonia (57,787). Those in which more capital was lent for the constitution of home mortgages were Madrid (11,739.5 million euros), Catalonia (8,562 million) and Andalusia (7,382 million). The communities in which the number of mortgages on homes increased the most in 2019 were Castilla-La Mancha (17.9%); Valencia (6.8%) and Murcia (6.1%), while those that saw the number of loans fall were seven, led by Navarra (-9.4%); La Rioja (-6.1%) and Balearic Islands (-3.6%). Ep


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