Slow, but steady. This is the recovery of the mortgage firm in Spain after the hit of the coronavirus crisis.
According to INE data, in November they were registered in the Property Registries 28,756 loans for home purchases, 1.8% more than in October and the best figure since February, just before the health pandemic broke out.
Juan Villén, head of idealista / mortgages, explains that “the data on home mortgages registered for the month of November are one more example of the recovery, not the rebound, in the volume of mortgage transactions that we have been observing in the second half of 2020, confirming that the market lacks sufficient strength to surpass pre-pandemic levels. The balance between fixed and variable mortgages is maintained, and the Euribor at minimums and banking competition keep the prices of new mortgages at minimum levels. “
However, the number of operations fell 2.4% year-on-year and accumulates red numbers of 7% in the whole of 2020, waiting to know the statistics for the last month of the year.
Figures from the statistical agency show that the flat rate still accounts for around half of new business. Specific, 49.2% of the mortgages registered in November were fixed, compared to the 50.8% represented by the variables, which represents a slight improvement compared to the previous months. However, it still does not reach the numbers of last spring: between March and May of last year, they accounted for more than 50% of new operations, the all-time high.
Regarding the average interest rate on loans, there is also a slight improvement compared to October. In the eleventh month of the year it stood at 2.45% (compared to 2.47% previously), and is close to the historical lows of 2.44% in September, as a result of the mortgage war that keeps the banks open and that it is based on the constant improvement of financing conditions. In fact, November is the second lowest data in the historical series.
There are also slight rises in the capital loaned by banks to finance the purchase of homes, which reached 3,930 million euros, an increase of 3% both in monthly and interannual terms. Thanks to this rebound, the balance for the first 11 months of 2020 is just -0.2%. Regarding the average amount of loans, the rise for the year as a whole rises to 7.2%, and is already close to 136,700 euros.
Data by Autonomous Community
Data from the INE place Andalusia (5,474), Community of Madrid (5,087) and Catalonia (4,711) as the three regions in which more mortgages have been registered for the purchase of housing. However, the ranking changes if we look at in which communities the most capital is lent, since the number one is Madrid (1,033.3 million euros), followed by Catalonia (750.5 million) and Andalusia (626.5 million).
Regarding the number of formalized mortgages, the autonomous regions with the fewest operations in November were Cantabria, Nvarra and La Rioja, with less than 400 firms in each case.
In year-on-year terms, up to eight regions drag negative numbers above the national average (-2.4%). The declines in the Balearic Islands, the Canary Islands, Cantabria and Madrid stand out, reaching double digits, while in Andalusia it is around 3%. Instead, five communities register increases of more than 10% (Aragon, Asturias, Castilla y León, Castilla-La Mancha and the Basque Country). Catalonia escaped the decline with a year-on-year increase of 1.6%.