The bad news for mortgage buyers is not over. End ECB rate hikes They raised it once again to rein in inflation. euribor and they averaged last February up to 3,534%with what chains 14 consecutive months of increase. a situation that turns into an increase average wage close 60% For those with variable rate loans It began to put many families in a difficult position.as evidenced by the increase in inquiries received by law firms specializing in consumer law.
In the special case of the province, where the average amount of mortgages issued last year according to the INE was 105,000 euros, it is expected to increase to the current 3,534% from -0.502%, which Euribor showed in December 2021 going from a monthly payment of about 375 euros to almost 590 euros, for those who have the review in the next few weeks. So, a difference 214 euros per month What is the same thing more than 2,575 euros per year. Added to the cart price hike or higher energy prices is a real blow for many homes.
But in addition to this, everything indicates that this will not be the last climb. Thus from the Financial Users Association (till the end) forecasts this indicator to stay at 4% next summer, with other sources even pointing higher before it moderates.
now, more than it contains default figures and the latest official data from the Bank of Spain barely placed it at 3.54% at the end of December, one of the lowest in the historical series. Similarly, those in charge of Spain’s main units have sought to minimize the impact of this increase in the results presented in recent weeks.
However, law firms started to be noticed increase in inquiries There are many citizens who see the bank receipts with concern. “Casualism is very diverse, but mainly they are asking about the possibility of benefiting from US measures. Good Practices Code (to remove the mortgage) and also Second Chance Law‘ says Carlos Zarco, head of the College of Alicante’s department of lawyers specializing in consumer law.
The problem is that many they just don’t meet the requirements The government-promoted document calls for deficiencies or extensions that help limit the quota, and also “doesn’t exempt it from payment, so many see it as bread for today and hunger for tomorrow,” explains Zarco. In the Second Chance Law, however, only in some cases the habitual residence is protected, so this is not an attractive alternative either.
Of course, according to experts, increase in embargoes and the lien—if it happens— takes As the new Mortgage Act, enacted in 2019, extends the default volume required for the bank to claim the mortgage. From the three months he had applied until then, he ranged from 12 to 15 months depending on the volume paid. In this way, it is possible that the main problem caused by the rise of Euribor will not become visible. until 2024.
new hires
Regarding the development of the market, the banking institutions awarded last year 26,110 new mortgages in the state of Alicantethe one which… 19,499 would finance a home purchase, 9.4% more than the previous year. The total amount financed is 2,815 million, of which 2,059 corresponds to loans given for housing purchases. Thus, while the average amount was 102,540 euros, it became 105,636 euros. With the rise in interest rates, a drop in these numbers is expected, but there has also been a certain ‘carpe diem’ effect that has caused some citizens to estimate their home purchase intentions to avoid the still expected new increases. .
Regarding the chosen modality, according to the College of Registrars, last year 60.9% of mortgages formalized in the Valencian Community as a whole were flat rate -Therefore, they will not be affected compared to the 39.1% referenced variable rate.
More difficult to calculate is the percentage of those with fixed or variable loans. Total number of mortgaged households in AlicanteAccording to the most recent Survey of Population and Housing Key Characteristics, it exceeds 209,000. The fact is that until very recently the majority formula was Euribor plus a differential.