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Number of New Mortgages Increased in April

New mortgages up 34.2% in April
New mortgages up 34.2% in April

New mortgages up 34.2% in April

There were 27,724 new mortgages for home purchases in April, 34.2% more than in the same month of the previous year.

The average amount of the new mortgages was 123,256 euros, according to the latest figures from the INE. The average amount showed an increase of 9.1%. when compared to April 2017. Compared to the previous month, the increase was 11.9%.

The total value of all mortgages taken out on urban property increased by 27.2%. For housing, total capital increased 46.5% year-on-year.

Interest Rates

The average interest rate at the start of the term for new mortgages taken out in April was 2.66%, registering a fall of 14.1%, when compared to the previous year.

Most new borrowers opted for variable rate loans (62.3%), with only 37.7% choosing a fixed rate.

The average rate at the start of variable rate mortgage terms, for home purchases, was 2.38% (20.5% lower than in April 2017). For fixed rate loans the average rate was 3.31% (1.3% lower than last year).

For all property loans, the average interest rate at the start of the term was 2.42% for variable rate loans (a decrease of 22.3%), and 3.15% for fixed rate mortgages (6.1% lower).

The average term for new mortgages was 22 years.

Results by Autonomous Communities

The communities with the largest number of new mortgages for home purchases in April were Madrid (6,018), Andalucía (5,154) and Cataluña (4,700).

When we look for the highest annual variations, at the top of the list we find the Balearic Islands (66.7%), Madrid (62.4%), and Castilla-La Mancha (54.2%).

The most capital for home mortgages was borrowed in Madrid (997.6 million euros), Catalonia (708.1 million) and Andalusia (531.8 million).

Looking at the monthly variations by autonomous community, the highest rates were seen in the Balearic Islands (+39.6%), Murcia (+37.9%), and Madrid (25.4%).

Aragón (-18.0%), La Rioja (-14.9%) and Cantabria (-14.8%) recorded the lowest monthly variations.