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Home mortgages fell 47.1 per cent, 22 consecutive months of decline 

Spanish Mortgages 300x199 - Spain Mortgages Biggest Drop Since 2004The number of home mortgages fell 47.1 per cent in February over the same month last year. This is the biggest drop since the statistics published in 2004. With 26,415 credit arrangements, this indicator marks 22 consecutive months of decline year-on-year, according to data released on Tuesday from the National Statistics Institute.

The drop in the number of mortgages granted on residential property was 9.4 per cent compared to January. The average loan amount was 104,868 euros, which is 14.6 per cent less than a year ago and 2.2 per cent less than the previous month. Cancellation of mortgages fell by 16.6 per cent.

The decline in mortgages registered on a property (total loans including rural properties, urban farms and houses) was 42.4 per cent, and the average loan amount came to 112,179, which is 12.5 per cent less than the year before. Changes in mortgage registrations reached 32,588, an increase of 4.8 per cent.

Changes on Interest Rates

24.9 of mortgages changed their interest rates. The percentage of fixed-rate loans fell after the change in conditions (from 9.3 per cent to 4.1 per cent of the total) since most of these loans were referenced to a variable interest rate.

All communities in February showed negative year-on-year variations in the constitution of mortgages, especially La Rioja (-70.8 per cent). Basque Country registered the highest average amount mortgaged, with 169,482 euros, followed by Madrid (153,671 euros).