Record falls for those with Spanish mortgages

With the beginning of the new year lots of expenses like electricity, water and public transport are to rise in price, but mortgages rates for the last two years have recorded record falls and this will give joy to those with mortgages.

The fall of the Euribor rate at end of 2013 to 0.54% will make a reduction of 3 or 4 euros per month.

The Euribor, the main indicator for calculating mortgages is expected to close the year at 0.541 %, representing a fall of 6 a thousanth 0.548 % compared to December 2012.

The percentage of savings you’ll get each month will vary depending on the years you have contracted the repayments, the review period and the differential, so a mortgage of 24 years mortgage payable with annual review and Euribor + 2.5% will see their mortgage reduced about 3-4 USD per month fee which is about 48 USD per year.

But if a mortgage still has a life of 39 years the savings will be around 1%, which is 6 euros per month less and over a year about 72 euros less.However semi-annual review mortgages will suffer another increase in their quotas.

The Euribor in 2013 ends at an all time low

Price per m2 on Spanish property suffers a further drop of 10.5%

02:17 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: drop, m2, marbella property, mortgages, price, spanish

Housing sales reached 28,418 units in October this year representing a drop of 8.9 % over the same month of 2012 according to the general council of notaries which is one organisation with the freshest data to be obtained from the writings of notarised purchases.

Property purchases and sales of homes fell 13 % yoy, while transactions of single family homes showed an increase of 10.6 % yoy, but on a very small number of operations therefore increasing its volatility.

Price per m2

Moreover notaries indicate that the average price per m2 of homes sold in October stood at 1,204 euros, thus suffering a further drop of 10.5 % yoy.

in the case of flats, the average selling price was 1,320 euros per m2, thus suffering a fall of 14.1 % and 1,315 euros for resale, 1.3 % to 1,341 euros per m2

Mortgages

The number of new mortgage loans to purchase dwellings in October suffered another year decline of 22.5 % to 20,575 mortgages, in the case of the purchase of a home, the average loan amount was 116,822 euros, thus suffering a fall of 5.2%

On a positive note the number of foreigners purchasing property in Spain, especially in coastal areas is rising to help counteract the downward trend in Spanish nationals being unable to buy, due to high unemployment and fewer mortgages being granted.