In last week’s Spanish property news, mortgage rates hit an all-time low.
Historically low rates are enabling extremely cheap mortgages to be offered by lenders. Flexible term interest rates are currently being advertised at less than 1.5 percent above the Euribor, and the latest Euribor rate has just been announced, with March’s figure being only 0.2 percent.
With a more pro-active attitude from banks and the surplus of unsold property gradually reducing, the number of new mortgages issued this year is nearly 20 percent higher than last year and has maintained 8 months of consecutive growth.
The vast majority of Spanish mortgages (90 percent) are agreed on flexible rates, based on the Euribor, and although these rates are unlikely to rise too much in the foreseeable future, the Euribor went as high as 5.39 percent in mid-2008.
It’s therefore worth mentioning again that buyers do have the possibility of fixed term rates, with some lenders reportedly agreeing 30 year loans at less than 4 percent interest, providing very attractive long term payment stability.
Analysts are viewing the mortgage figures extremely favourably, with one of the ‘big three’ credit agencies (Fitch) marking an end to house price falls in Spain and a return to slow but gradual growth.