La proporción de hipotecas vivas a tipo fijo iguala por primera vez la de las variables

Spain has reached the levels observed in other European countries for the first time, where fixed-rate mortgages dominate. The sharp decline in property prices last year has caused an even split between fixed-rate and variable-rate mortgages in terms of stock. For decades, fixed-rate mortgages were rare in Spain, unlike the norm in much of Europe.

In the past eight years, their share grew from 7% to 42%, while variable-rate mortgages dropped from 43% to 43%. Mixed-rate mortgages still account for the remainder, according to the Spanish Mortgage Association. CaixaBank is a good indicator of the situation, as it controls a quarter of the market. Before 2012, only 10% of the mortgages it issued were fixed-rate, while practically all (93%) were in the following year.

In terms of stock, 35% of mortgages are now fixed-rate, representing €50 billion more than four years ago. The sharp fall in property prices due to intense market competition has led to a significant shift away from variable-rate loans. Banks offered loans at 2% TAE to applicants with high salaries in the previous year, below the swap rate, which is the cost of covering the operation.

Some banks, like Ibercaja, Kutxabank, and Unicaja, did this by providing high insurance and investment product sales (up to six, including pension plans). However, not all were as demanding. CaixaBank and Sabadell offered the most aggressive deals with the least linkage, according to market research firm Inteliens. The mortgage market is thriving, though the Bank of Spain insists there are no signs of a bubble, as commercial aggressiveness has not relaxed criteria for granting loans and because home debt levels are not concerning.

According to its data, home prices are 18% below real terms (adjusted for inflation) compared to 2007. In the past year, 643,870 mortgages for home purchases were signed, the highest figure in a decade, compared to 1.76 million in 2007, during the credit bubble. These mortgages were signed above 80% of the property's valuation, considered risky.

In Spain, such mortgages account for 15.6% of the total, far from the peaks reached during the credit boom, the Bank of Spain notes. Among the six banks being monitored, this portfolio reaches €32 billion. Banks finance an average of 68% of the valuation of homes sold in Spain. The average interest rate at the time of signing is 2.86% for variable-rate mortgages and 2.83% for those fixed-rate, according to INE data. Spain has the cheapest mortgages in Europe, only behind Malta and Bulgaria.