Fixed Rate Mortgages Represent 4.3% of Total Mortgage Balance
According to a recent report from the Spanish Mortgage Association (AHE), in the residential market in Spain fixed rate mortgage loans now represent 4.3% of the total mortgage balance outstanding (as at June 2016).
The AHE’s analysis of the Spanish mortgage portfolio, is compiled using data from 12 credit institutions, whose mortgage balance altogether represents 93.3% of the total Spanish outstanding mortgage balance.
In terms of interest rates, the AHE pointed out that fixed rate loans have risen slightly, to represent around 6% of the portfolio in June, compared with just 4% in December 2015, while 94% of the portfolio loans have been formed with variable rate mortgages. The AHE indicated that, specifically referring to residential activity in Spain, 4.3% of the mortgage loans are of a fixed rate type and 95.7% are variable rate loans.
The report also notes, according to El Mundo, that there has been a slight increase registered in the average repayment term and in the average loan amount. The average mortgage loan amount stood at 100,754 euros in June 2016, which is 1.4% more than in December 2015, while the average repayment term of the loans in the portfolio increased by 1.6 years over the data for December 2015, to stand at 17.82 years.