Number of mortgages still falling

INEThe National Statistics Institute has released figures showing the average value of mortgages taken in March decreased 4.3% compared to the same period in 2011. The average value stands at 112,635 euros.

The number of mortgages with changes to conditions decreased 22.8%, while registered mortgage cancellations decreased 20.3%.

Mortgage Statistics  – March 2012

During the month of March, the average amount of mortgage constitutions recorded in the land registries stood at 112,635 euros, a figure 4.3% lower than the same month the previous year and 0.4% higher than that recorded in February 2012.

In the case of mortgages constituted for dwellings, the average amount was 103,782 euros, 7.8% less than in March 2011, and 1.0% less than that registered in February 2012.

The value of the mortgages constituted on urban properties was 4,351 million euros in March, indicating an interannual decrease of 42.5%. In dwellings, the capital loaned exceeded 2,586 million euros, 46.5% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in March (70.2% of the total), followed by Savings Banks (14.1%) and Other financial institutions (15.7%).

Regarding the capital loaned, Banks granted 73.0% of the total, Savings Banks 12.4%, and Other financial institutions 14.6%.

Mortgage interest rates

The average interest rate in March 2012 was 4.37%, indicating a 10.8% increase in the interannual rate, and 0.5% as compared with February 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.43%, and the average term was 21 years. Regarding Banks, the average interest rate for mortgage loans was 4.50%, and the average term was 21 years.

94.1% of the mortgages constituted in March used a variable interest rate, as opposed to the 5.9% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 87.0% of new contracts.

Mortgages with registration changes

In March, the total number of mortgages with changes in their conditions recorded in the land registries stood at 25,747, with an interannual decrease of 22.8%. For housing, the number of mortgages with modified conditions decreased 22.4%.

Considering the type of modification of the conditions, in March 21,678 novations (or modifications produced within the same financial institution) were produced, for an interannual decrease of 21.2%. The number of transactions that changed institutions (subrogations creditor) was 2,955, that is 31.7% less. In turn, 1,114 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an increase of 27.0%.

Number of mortgages with changes in interest rate conditions 

Of the 25,747 mortgages with changes in their conditions recorded in the land registries in March, 39.3% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 3.9% to 1.9% 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 Active Reference Rate of Savings Banks (3.62%) and after the change was MRTI of Savings Banks (4.13%).

After the modification of conditions, the average interest of the loans decreased 0.3 points in fixed interest rate mortgages, and decreased 0.08 points in variable interest rate mortgages.

Registered mortgage cancellations 

In March, 44,390 mortgage cancellations were registered, 20.3% less than in the same month of 2011. Mortgages cancelled on rustic properties increased 2.8%, whilst those cancelled on urban properties decreased 20.9%. Cancellations of mortgages on dwellings decreased 24.4% in the interannual rate.

Geographical distribution

The highest numbers of mortgaged properties per 100,000 inhabitants¹ was in Castilla y León (148). There is no community that presented a positive variation rate. The greatest negative variation rates was registered in La Rioja (-57.2%).

Principado de Asturias registered the highest average mortgaged amount (154,234 euros), and presented the highest positive variation rates (39.3%).

The Communities showing the highest number of properties with modified conditions in March per 100,000 inhabitants¹ were Comunitat Valenciana and La Rioja (both with 121). Those having the greatest number of registered mortgage cancellations per 100,000 inhabitants¹ were La Rioja (191), and Castilla – La Mancha (156).

¹ This data was calculated from the revision of the figures of the Municipal Register for the year 2011. Only the population aged 18 to 84 years old was considered.

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

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