There were more than 31,000 new mortgage approvals for home purchases in May, 7.3% more than in May 2017. The average amount of those new loans was 117,044 euros, representing an increase of 2.8%.
The total capital borrowed for housing, in May, was 3,647.8 million euros, an annual increase of 10.3%, according to the latest data from the INE.
For all new mortgage loans taken in May, the average interest rate at the start of the loan term was 2.63% (4.3% lower than in May 2017). The average term of the loans was 22 years. 61.9% of the mortgages started on a variable rate, with 38.1% on a fixed rate.
The average interest rate at the start for variable rate loans was 2.4% (9.8% lower than in May 2017). For fixed-rate loans it was 3.12% (6.6% higher than last year).
For housing mortgages, the average rate at the start was 2.62% (9.2% lower than last year). The average term was 23 years. 59.4% of home mortgages taken in may were on a variable rate, with 40.6% on a fixed rate.
The average interest rate at the beginning for those home loans was 2.38% for mortgages on the variable-rate (a decrease of 14.5%). For fixed-rate loans the average interest rate was 3.04% (0.8% lower).
Results by Autonomous Communities
The communities with the largest number of mortgages taken for housing in May were Andalucía (5,752), Madrid (5,193) and Cataluña (4,895).
By autonomous community, the highest annual variation rates were in the Canary Islands. Somehow, the islands managed to approve 70.9% more mortgages than in the same month last year, an impressive increase. Also significant were Castilla – La Mancha (21.7%) and Extremadura (18.5%).
The communities in which the most capital was lent for housing mortgages were Madrid (877.1 million euros), Catalonia (692.8 million) and Andalucía (584.4 million).
The highest monthly variation rates in the number of home mortgages were seen in the Canary Islands (85.9%), the Basque Country (34.1%) and Comunidad Foral de Navarra (29.7%).
Are you thinking of buying a Spanish property? Read our Buyers Guide with details of costs, timescales and more. If you need more information or advice, feel free to contact us at anytime on +34 952 907 386, or firstname.lastname@example.org.