Sunday 1/23/22
PROPERTY

Home mortgage signing soars in Spain and sets 10-year record

The autonomous regions that registered the highest number of home mortgages signed in September were Andalusia, Madrid, Catalonia

A woman walks with a child through the center of Barcelona. Photo: Pixabay.
A woman walks with a child through the center of Barcelona. Photo: Pixabay.

The Covid-19 pandemic continues to scare Spaniards with blows such as the recent rise in incidence or the appearance of the South African variant Omicron. However, the economy, and more particularly the Spanish real estate sector, continues to show signs of unstoppable recovery.

According to the latest data released by the Spanish statistical office (INE), 42,547 home mortgages were signed in September, rising by 57.7% compared to the same month in 2020. This is the highest number of mortgages signed since March 2011, when almost 43,000 real estate loans were signed.

With this new rise, the signing of home mortgages has already added seven months of consecutive year-on-year increases.

In September, the average amount of home mortgages was 143,831 euros, 7% more year-on-year, reaching figures prior to the pandemic.

The autonomous regions that registered the highest number of home mortgages signed in September were Andalusia (8,749), Madrid (7,930) and Catalonia (7,073).

In addition, the regions in which more capital was lent for the signing of mortgages on homes were Madrid (1,737.1 million euros), Catalonia (1,150.3 million) and Andalusia (1,047.8 million).

Interest rate, repayment term

In monthly figures, the number of home mortgages increased 28.5% in September compared to August. Borrowed capital increased by 34.1%.

In September, the average interest rate for home mortgage loans stood at 2.47%, with an average repayment term of 25 years.

According to the INE, 34.3% of home mortgages in Spain are signed at a variable interest rate and 65.7% at a fixed rate.

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