Mortgage activity has shifted in our country, with a notable 35% mortgage change rate gaining visibility. In 2022, the figures rose by eight percentage points compared with 2021 (27%). Some regions show even higher movement, including Ireland (44%) and Slovenia (42%). The data come from ECB and EMF, compiled by benchmarking tool and mortgage advisor iAhorro.
In Spain, 19% of changes involved renewing the loan, while 16% related to a succession. Yet, a mortgage adviser from iAhorro cautions that the renewal figure could have been higher if cancellations aimed at altering loan terms had been counted. This underlines a broader reality about how changes are recorded and perceived in the market.
To grasp the scale of the issue, it helps to define key terms: a mortgage renewal means adjusting conditions after reaching agreement with the existing bank, with the loan potentially moving to another lender. Cancellations, by contrast, cancel the existing mortgage and open a new one with different terms at a different institution; such transactions are recorded as a new mortgage rather than a change to the existing agreement.
Why are cancellations not saved as changes?
Industry insight suggests that many borrowers who want better terms first pursue a succession, but some prefer a cancellation because it allows a fresh start with a new set of conditions. The cost landscape also matters: cancellation tends to be more expensive for the user since the process starts from scratch, and banks may benefit from the new business.
When these factors are considered, the published percentages from central banks and European mortgage bodies may understate the actual level of change in mortgages. In recent months, a significant share of users turning to advisory platforms has shifted to more favorable terms to reduce payments.
Spain in the European context
Comparing Spain with other European economies shows that Slovenia and Ireland lead in the share of total mortgage changes. In Slovenia, changes can be broken down into renewals and substitutions, while Ireland shows a similar pattern. In other parts of Europe, mortgage adjustments face different dynamics, with countries where renting remains costly showing particular challenges for modifying loan terms.
In some nations, the structure of mortgage contracts makes changes difficult. For example, in a certain large economy, borrowers sign long-term agreements with preset terms, which limits the scope for mid-course modifications; opening a new mortgage is often the more practical route. In another country, a blanket clause that ties all debts to the same lender can limit flexibility for adjusting mortgage terms.
Overall, there are many markets where the mechanism of surrogacy or substitution is less accessible, meaning certain changes cannot be carried out as easily as in other places.
Saving as a driver of change in Spain
The mortgage landscape has shifted as Euribor began a renewed ascent. Data from iAhorro show the share of agreements aimed at improving mortgage conditions has risen through the years: a notable climb from modest levels in early 2022 to a peak in 2023. This reflects a broader trend toward seeking refinancing opportunities when rates move.
To interpret these shifts, it helps to consider the typical timeline from first search to signing a loan. The window is often several months, and the timing of changes can be influenced by the pace of rate movement and the availability of better terms.