Average mortgage value increases in June

Mortgage applications increased 1% in June
Mortgage applications increased 1% in June

The average value of new mortgages in Spain increases 1.0% in June 2012, compared to the same month last year. The average value now stands at 122,487€.

This is according to figures released by the National Institute of Statistics. The main points of the press release are below.

Mortgage Statistics – June 2012

During the month of June, the average amount of mortgage constitutions recorded in the land registries stood at 122,487 euros, a figure 1.0% higher than the same month the previous year and 9.1% higher than that recorded in May 2012.

In the case of mortgages constituted for dwellings, the average amount was 107,507 euros, 2.6% less than in June 2011, and 6.3% higher than that registered in May 2012.

The value of the mortgages constituted on urban properties was 4,672 million euros in June, indicating an interannual decrease of 20.8%. In dwellings, the capital loaned exceeded 2,614 million euros, 27.2% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in June (75.3% of the total), followed by Savings Banks (10.2%) and Other financial institutions (14.5%).

Regarding the capital loaned, Banks granted 74.4% of the total, Savings Banks 10.5%, and Other financial institutions 15.1%.

Mortgage interest rates

The average interest rate in June 2012 was 4.32%, indicating a 4.8% increase in the interannual rate, and a 0.1% decrease as compared with May 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.40%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.43%, and the average term was 21 years.

94.3% of the mortgages constituted in June used a variable interest rate, as opposed to the 5.7% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 84.5% of new contracts.

Mortgages with registration changes

In June, the total number of mortgages with changes in their conditions recorded in the land registries stood at 29,840, with an interannual increase of 0.5%. For housing, the number of mortgages with modified conditions decreased 0.1%.

Considering the type of modification of the conditions, in June 25,225 novations (or modifications produced within the same financial institution) were produced, for an interannual decrease of 2.5%. The number of transactions that changed institutions (subrogations creditor) was 3,258, that is 23.1% more, as compared with June 2011. In turn, 1,357 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an interannual increase of 16.2%.

Registered mortgage cancellations

In June, 37,828 mortgage cancellations were registered, 4.5% less than in the same month of 2011. Mortgages cancelled on rustic properties decreased 7.3%, whilst those cancelled on urban properties decreased 4.4%. Cancellations of mortgages on dwellings decreased 7.8% in the interannual rate.

You can read the full press release here: Mortgage Statistics – June 2012

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