The average amount per mortgage has gradually risen in the past years since the average price per property has done so too. Nevertheless, the total balance for current mortgages reduced this past June to €305,522 million after a slight decrease of 0.5% was observed in a year-on-year basis according to mortgage statistics provided by the Spanish Mortgage Association (Asociación Hipotecaria Española, AHE).
In this regard, the organisation indicates this fall constitutes ‘one of the most moderate’ of the last decade alongside the one recorded in June 2019 at a 0.2% drop. With the exception of 2020, marked by the coronavirus crisis and an unusual net rise over 3% thanks to the ‘rebound effect’ noticed by the property market after hard lockdowns were over during the first months of the pandemic.
New listed mortgages rose during the first part of the current year and hit €34,522 million, nearly €22,000 million more than the issued during the same time period in 2021 and short of €4,500 million of the almost €39,000 million issued during the whole previous year.
AHE reveals this dynamism is applicable to both covered bonds and mortgage backed securities. The former, the main source of mortgage portfolio refinancing, have increased the number of issuances to around 150% with regard to the accumulated amount during the first half of 2021. Specifically, the number of new issuances during the first six months of the year had not been surpassed since 2012 at a value of €21,400 million.
Net change balance was €10,275 million in absolute terms, this increased the balance in circulation to €218,611 million by June 2022. This last figure means approximately 35% of financing is secured by mortgage, registering similar levels to previous years.