The proportion of live fixed-rate mortgages equals that of variable-rate mortgages for the first time
Spain is approaching, for the first time, the levels of other European countries, where the fixed rate is the predominant one. The sharp drop in prices last year is causing a tie in terms of stock.
Spain's mortgage market has shifted towards fixed-rate loans, with 42% of outstanding mortgages now at a fixed rate, compared to 43% at variable rates. CaixaBank, which controls a quarter of the market, has seen a significant increase in fixed-rate mortgages, from 10% before 2012 to 93% last year. The stock of fixed-rate mortgages has grown by €50 billion in four years, with some banks offering loans at below the swap rate.
The Spanish banking sector is experiencing a surge in mortgage business, with 643,870 loans approved for home purchases last year, the highest number in a decade. According to the Banco de España, there are no signs of a housing bubble, with household debt not being a concern and housing prices 18% lower in real terms than in 2007.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
