Mortgage renegotiations are already signed at more than 4% interest, maximum since there is data

Mortgage origination falls 17% in the first half

MADRID, 2 Ago. (EUROPA PRESS) -

Mortgage renegotiations registered a new escalation in their price in June, signing at an interest rate of 4.06%, 18 basis points more than in May, according to data published by the Bank of Spain and consulted by Europe. Press.

This is an all-time high since the Bank of Spain began to publish in 2014 the interest rate data for mortgage loan renegotiations. Never before had the level of 4% been exceeded. A year ago, mortgage renegotiations were signed with a rate of 1.96%.

The renegotiations may include modifications in the terms, in the interest rate or change from fixed to variable interest rate.

The weighted average rate of all the operations signed during the sixth month of the year was 3.75%, four basis points more. Ordinary operations, without taking renegotiations into account, were signed at an average interest rate of 3.72%, three basis points more.

Regarding the volume, in the sixth month of the year mortgage loans worth 5,284 million were signed, 2.7% more than in the month of May. Of that figure, renegotiations increased by 2.4%, up to 419 million euros, while the rest of operations stood at 4,864 million, 2.7% more.

In the first half of the year as a whole, the volume of mortgage loans signed reached 28,126 million euros, which represents a drop of 17% compared to the new production originated in the same period of 2022.

However, the mortgage production for the month of June did not exceed the amounts amortized, so the outstanding balance of the mortgage portfolio in Spain stood at 501,577 million euros, which represents a net amortization of 1,080 million and a decrease of 0 ,2%. In the last year, the outstanding mortgage balance in Spain has been reduced by 2.6%, equivalent to 13,352 million euros.

Thus, the weighted average rate of the outstanding mortgage balance rose to 3.19% in June, 16 basis points more than in May. By maturity terms, mortgages with a maturity of up to 1 had an interest rate of 3.78% (27 basis points more), while those with a term of between 1 and 5 years stood at 5, 76% (11 more points); and mortgages with a maturity of more than five years reached 3.18% (16 points more).