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Home Mortgage Borrowing Up in January

Home mortgage borrowing up 20% in Andalucia
New home mortgages up 20% in Andalucia

Andalucia saw a 17.3% increase in home loans

January saw a 6.1% increase in the number of new home mortgages. The average amount, however, fell by 5% to 114,691 euros, according to data released by the INE.

On all property types, the average amount also fell, with an average of 129,387 euros, 12.2% lower than the same month in 2019.

The total amount of borrowed capital on home mortgages in January reached 4,509 million euros, a slight increase of 0.8% when compared to January 2019.

Interest Rates

Across all property types, the average interest rate at the start of the loans taken in January was 2.56% and the average loan term was 20 years. 58.7% of the new mortgages were taken at a variable interest rate and 41.3% at a fixed rate.

The average interest rate at the beginning of the loan term was 2.24% for variable rate mortgages and 3.14% for fixed rate mortgages.

Looking only at mortgages taken for the purchase of a home, the average interest rate was 2.55% and the average term was 22 years. 58.2% of home mortgages are at a variable rate and 41.8% at a fixed rate.

The average interest rate at the beginning of those new home loans is 2.22% for mortgages on variable rate and 3.05% for fixed rate mortgages.

Results by Autonomous Communities

The communities with the highest number of new home mortgages in January were the Community of Madrid (8,160), Andalusia (7,173) and Catalonia (5,404).

The number of new mortgages in Andalusia represents an increase of 17.3% when compared to January last year. When compared to the previous month, the increase is more notable at 41.4%

The communities in which the most capital was borrowed for home loans are the Community of Madrid (1,231.8 million euros), Catalonia (791.4 million) and Andalusia (707.9 million). Andalusia’s borrowing also represents increases with the monthly variation reaching a 20.2% increase.

The highest annual variation rates in terms of the total capital borrowed are Navarra (58.7%), Extremadura (35.9%) and the Balearic Islands (33.9%). In contrast, the greatest decreases were registered in the Community of Madrid (–10.9%), the Basque Country (–9.0%) and Castilla – La Mancha (–8.3%).

Looking at the number of new home mortgage approvals in January, the highest annual variation rates were seen in Asturias (90.8%), the Balearic Islands (70.9%) and Navarra (69.3%).

On the other hand, the communities with the most significant negative annual variation rates are Madrid (–22.7%), Basque Country (–12.0%) and La Rioja (–5.9%).