The number of mortgages on dwellings registered in the property registries it was of 36,249 in the month of october from 2021: a 27.9% more than in the same period of 2020, according to the National Institute of Statistics (INE). yesand deals with eighth consecutive month of growth. With regard to the average amount, it stands at 138.11 euros. Therefore, 1.9% more.
And what was the average interest rate in the case of housing? 2.55%. Term? 25 years. Another relevant fact is that 67.2% of home mortgages were signed at a fixed rate. The remaining 32.8% did so at a variable rate.
yeson ya six months in a row in the that the figure for fixed-rate mortgages exceeds 60%. A decade ago, they only represented 4% of the total. In the absence of the months of November and December from the INE, the data for the last quarter of 2021 from the Trioteca digital platform shows that the trend will continue:applications for fixed mortgages represented 94% of the platform’s total.
The fixed mortgage, according to experts, will continue to reign in 2022. Among its attractions, which its average interest rate is around 2.81%. Very far from the 6% reached in the middle of the real estate bubble. “The fixed rate could not compete before with the variable rate with a negative Euribor. This has meant that entities have had to lower rates a lot, to attract more clients by choosing a fixed rate and ensure a profit, even if it is not very high”, says Carles Solé, mortgage formalization manager at Tecnotramit. In addition, they have managed to retain customers in the medium and long term.
The main advantage of contracting a fixed-rate mortgage is that the user will pay the same installment throughout the life of the mortgage. Summarized in two words: stability and tranquility. You no longer have to be aware of the possible variations of the Euribor.
The downside is that they used to be more expensive. They used to, because the difference with the variables have been shortening until they are almost on par. Another aspect that differentiates them is that referred to early repayment commissions.
According to the new Mortgage Law of 2019, in the case of fixed mortgages, the maximum is 2% in the first 10 years and 1.5% in the remaining years. In the case of variables, the maximum commission that is applied is 0.15% in the first five years or 0.25% in the first three years of the mortgage.
green is in fashion
If fixed-rate mortgages will continue to be predominant in 2022, there will be anotherace that will grow to double digits. These are known as green mortgages, that is, those linked to rewarding the energy efficiency of a home. What incentivean the improvement of those other dwellings that, due to their age, presentan Less favorable energy ratings.
According to the Negotiating Agency, fintech dedicated to mortgage brokerage registered with the Bank of Spain, will grow double digits due to the greater offer from banks and the best contracting conditions. Without forgetting the push that will come from the European funds that dedicate a part to the rehabilitation of buildings.
It should be remembered that its possible field of action is immense. More than half of the existing buildings in Spain were built before 1980. Around 21% are already half a century old. Therefore, six out of ten buildings were set up before the first regulation was decreed that required minimum energy efficiency criteria in construction.
“The banks that sell green mortgages apply an average interest rate reduction of 0.1 points, and/or eliminate or significantly reduce the opening commission and the mortgage percentage of the value of the property (loan-to-value), above 80%”, they point out from the Negotiating Agency.
Hence from the fintech Bet on the progressive appearance of new “more imaginative” offers. And it will be so both for the client who is looking for a home with high energy efficiency (new), and for those who wish to increase the efficiency of a less energy-efficient home (second-hand).
According to fintech, with a little investment you can improve the energy efficiency of the house one step. Something that would happen if about 1,000 euros were invested in changing a gas boiler, for example. Four out of five buildings are currently energy inefficient.“In addition, the risk profile of applicants for this type of product is lower, which will also contribute to the expansion of the ‘green’ financial product”, specified from Negotiating Agency.
PTherefore, a new commercial field in which, in addition to the mortgage conditions (term, associated products…), the characteristics of the property that contribute to the improvement of the environment will also be valued.
“In this way, a house with energy rating A or B would obtain better conditions than those C, D, or E. Those financing aimed at increasing the energy efficiency of housing by 30% may also benefit from better conditions”, conclude from Negotiating Agency.