Mortgage Statistics – January 2012

According to figures released by The National Statistics Institute (INE), during the month of January, the average value of the mortgage constitutions recorded in the land registries stood at 122,973 euros, a 5.0% increase compared to the same month in 2011, and 10.6% higher than that recorded in December 2011.

In the case of mortgages constituted for dwellings, the average value was 107,217  euros, 9.7% less than in January 2011, and 3.2% higher than that registered in December  2011.

The value of the mortgages constituted on urban properties stood at 5,308 million euros in January, indicating an interannual decrease of 35.3%. In dwellings, the capital loaned  exceeded 3,127 million euros, 46.9% less.

Mortgages by institution

Banks were the institutions that granted the highest number of mortgage loans in January (64.7% of the total), followed by Savings Banks (18.9%) and Other financial institutions  (16.4%).

Regarding the capital loaned, Banks granted 67.6% of the total, Savings Banks 18.2%, and Other financial institutions 14.2%.

Mortgage interest rates

The average interest rate in January 2012 was 4.42%, indicating a 19.1% increase in the interannual rate, and an increase of 1.6%, as compared with December 2011.

By institution, the average interest rate of Savings Bank mortgage loans was 4.37%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.55%, and the average term was 21 years.

92.8% of the mortgages constituted in January used a variable interest rate, as opposed to the 7.2% that used a fixed rate. Within the variable rates, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 87.8% of new contracts.

Mortgages with registration changes

In January, the total number of mortgages with changes in their conditions recorded in the land registries stood at 30,571, with an interannual decrease of 6.6%. In the case of dwellings, the number of mortgages with modified conditions decreased 9.0%.

Considering the type of modification to conditions, in January, 25,409 novations (or modifications produced within the same financial institution) took place, for an interannual decrease of 2.6%. The number of transactions that changed institutions (subrogations creditor) was 3,487, 28.2% less. In turn, 1,675 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied a decrease of 6.2%.

Number of mortgages with changes in interest rate conditions

Of the 30,571 mortgages with changes in their conditions recorded in the land registries in January, 40.6% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 4.1% to 2.7% of the total), since most of these loans were referenced to a variable interest rate. Within the interest rate structure, the Euribor was the main reference. The lowest average interest before the change was that corresponding to Other interest rates (3.90%). The lowest average interest after the change was that corresponding to the Euribor (4.36%).

After the modification to conditions, the average interest of the loans decreased 0.19 points in fixed interest rate mortgages, and decreased 0.10 points in variable interest rate mortgages.

Registered mortgage cancellations

In January, 40,515 mortgage cancellations were registered, 7.5% less than in the same month of 2011. Mortgages cancelled on rustic properties increased 11.4%, and those cancelled on urban properties dropped 8.1%. Registered cancellations of mortgages on dwellings decreased 9.9% in the interannual rate.

Geographical distribution

The highest number of mortgaged properties per 100,000 inhabitants was recorded in La Rioja (224). There is no community that presented a positive variation rate. The greatest negative variation rates were registered in Aragon (-61.0%) and Galicia (–49.2%).

Comunidad de Madrid registered the highest average amount mortgaged (169,892 euros). Andalucia presented the highest positive interannual variation rate (30.0%).

The Communities showing the highest numbers of properties with modified conditions per 100,000 inhabitants were Castilla-La Mancha (145) and Comunitat Valenciana (134). Those having the greatest number of registered mortgage cancellations per 100,000 inhabitants were La Rioja (320) and Cantabria (162).

You can download the complete report here: Mortgage Statistics – January 2012

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