New Mortgages Fell by 28.5% in August
October 23rd, 2012
The number of new mortgages granted on homes stood at 21,106 in August. This is the lowest figure since the comparable historical series began in 2003 and, according to the National Statistics Institute, represents a decrease of 28.5% year-on-year. This latest figure marks 28 consecutive months of recorded decreases.
Up until now, the lowest figure recorded was in April this year, when 21,498 new home mortgages were granted.
In the first eight months of the year, the number of mortgages granted fell by 34.7% over the same period of 2011, while month-on-month (August over July), home mortgages fell by 13.1%, compared to the 0.1% decrease experienced month-on-month in July.
Borrowed Capital Fell by 31%
Borrowed capital decreased by 30.9% year-on-year in August, to 2,186.4 million euros, while the average loan value for the purchase of a home reached 103,592 euros, 3.3% less than in the same month of 2011.
El Economista reported that banks were the institutions that granted the greatest number of mortgage loans in August, accounting for 71.2% of the total, followed by other financial institutions (18.4%) and savings banks (10.4%). With regards to the capital borrowed, banks made up 72.9% of the total, savings banks 9.5%, and other financial institutions 17.6%.
Pursuant to the terms of the loans, the savings banks granted an average period of 22 years with an average interest rate of 4.49%, above the banks’ rate, which was 4.37%, with a term of 21 years.
In addition, the statistics agency reported that 35,641 mortgage cancellations were registered in August, which is 12.9% more than the same month of 2011.
- Residential Mortgages Fell 30.5% Year-on-Year in May
- Home Mortgages Fell 25.2% in June
- Mortgages Drop Most in Two Years with Cut of 38% in April