2021 was a great year for the Spanish mortgage market. It recorded the best numbers in a decade. This recovery should continue into 2022 due to rising housing requests, savings -currently at an all time high-, and low financing costs. More than 400,000 mortgages were awarded during 2021, well over the 337,700 granted during 2020, or 361,000 in 2019.
It seems fixed rate mortgages will be favoured in 2022. One of the attractions is interest rate, around 2.81%. Very far from the 6% reached in the height of the housing bubble. Carles Solé, Tecnotramit’s Mortgage Loan Manager, points out that ‘fixed rate could not compete against variable rate with a negative EURIBOR. This meant interest rates were lowered a lot in order to gain clientele who chose fixed rate. It ensured profit, although not excessive.’
The first and clearest advantage of fixed rate mortgages is the same fee will be paid during the full mortgage term. There is no need to keep watch on possible changes.
On the other hand, green mortgages are also on the rise. Both refurbishment and energy-efficient new builds are free from tax on documented legal acts. They also receive particular attention from financial institutions by reducing the interest rate and increasing standard financing levels -surpassing the usual 80% limit.
Carles Solé indicates that ‘complementary to new builds, the novel goal of these mortgages is refurbishing the country’s obsolete housing stock since there is vast room for improvement. Just like that, a 30% energy efficiency increase on existing buildings merits the special “green mortgage” treatment with all its adjoining advantages.’