This unusual increase in interest rates sponsored by central banks combat inflation resulted in a very strong increase. home loan payments in the last year and a half, leading to families that they can afford pay early part of their loans to reduce their debt and stop the coup. Of course, with the relevant nuances. Therefore, early depreciation variable mortgagesaffected by the increase euriborbut they also occurred still, although their quota has not changed. And households with more incomeand hence more available resources paid back early up to 1.6 times more More than the less affluent, according to data from the Bank of Spain.
Between January 2022 and March 2023families depreciated early (more than required in their regular payments) 9.2% of variable mortgage balance Available at the end of 2021 and 6.4% of portfolio mortgage flat rate. Households with higher annual income €47,199in particular, they paid back sooner than expected 11.7% and 7.3%, respectively. On the other hand, families with an annual income Less than 30,596 Euros prepaid 7.2% and 5.4%. There were those who had income 30,596 and 35,066 Euros (7.7% and 5.7%), 35,066 and 40,245 euros (8.3% and 5.8%) and 40,245 and 47,199 euros (9.4% and 6.3%). In other words, the higher the economic level, the higher the ability to allocate savings, as can be predicted, for loan repayment.
“HE cost increase increase in variable rate mortgages incentives early redemption reinforced With this fact would not increase charging some liquid assets such as deposit“, explained the Bank of Spain itself in a recent report. ultra low rates Before 2022, so financing was very cheap and made economically sound get into debt instead of saving. Since last year, loan installments have skyrocketed. deposit interest without doing the same, so it made more sense to get out of debt. HE an average man of the bank’s mortgage portfolio, hence, 1.1% January 2022 to 2.13% in December and 3.19% compared to last Juneattracting attention to the new deposit developed 0.06% at 0.72% and 2.21%respectively.
Fewer fees or terms
HE Faster The rate of household repayments responds to the fact that early payment of the mortgage is permissible. reduce quota (with less paid per month) or shorten the term the maturity of the loan (less interest is paid in the long run). As a result, as stated by the Bank of Spain in its report, families are “increased part though reduced” between extraordinary savings they have accumulated during the pandemic to pay off loans ahead of time: by an amount equivalent to 1.3% of their gross disposable income and steadily increasing from 2021 and above all from 2022.
from closing of 2014Thus, households amortized every three months. on average 2.1% your debt between regular and early payments. Last year, and mainly due to early depreciation, the pace last year 2.3% of the first quarter (approximately 11,500 million subscribers) 3.2% of the last (16,090 million), a recurring percentage (16,100 million) between January and March 2023. In total, families last year approx. 54,700 million a larger amount than new home purchase financing provided by businesses (some 54,000 million). In conclusion, mortgage portfolio from the bank started to shrink just a year ago. And at an increasing rate: it fell in the second half of last year 3.838 millionbetween January and March of this year 5.711 millionup to 493,705 million.
no commission
Banks confirm this trend. “Many families with savings, they went to their assets to ask how much they need pay early because of their mortgage quotas remained more or less the same Despite the increases in Euribor. Inside big citieswhere the loan amount was higher, they were basically able to do it. families with more savings and higher rents. But in the rest, let’s say the size Saragossa downIt is a possible process. more generalized“, indicate financial resources.
Period, The agreement reached last November between the Ministry of Economy and the banks so customers not having to pay commissions Due to early repayment of variable mortgages in 2023 (on fixed mortgages it’s not legally possible unless you break the bank, something that doesn’t happen when interest rates go up like they are now). change the mortgage variable rate to fixed rate room unrequited This is practice.