The mortgages of Spain between the most expensive of Europe
25.08.2008
The banking institutions of Spain were taking years the cheapest mortgages of Europe could presume to have in them, the information points now when the mortgages in Spain every time are more expensive. Of a whole of 15 countries examindados for the European Mortgage Federation (FHE), the interest rates applied in Spain are located in the tenth place from ends of 2007.
According to the information of the European organization, the interest rate most representative of the Spanish mortgages was located in 5,76 % in the last trimester of 2007 and in 5,67 % in the first one of 2008. More sales that the Spanish mortgages were those of Denmark, France, Greece, Sweden, Belgium, Germany, Ireland, Italy and Lithuania, with interest rates between 4,35 % and 5,56 %, in the Danish and Lithuanian cases. Some more faces resulted from the United Kingdom, Slovenia, Poland, Estonia or Hungary, with interest rates of up to 6,50 % in the mortgages most representative of the Polish market.
The FHE recommends to be cautious with the information of the comparison, since the applied interest rates are not homogeneous in its entirety. That's why, it recommends to take as a comparison point the “mortgage interest rate representative of the market” (the most frequent). According to this comparador, the typical Spanish mortgage of the first trimester () it turned out to be to 5,67 % almost a point more expensive than the French mortgage (to 4,70 %) and almost a point cheaper than that of Poland.
For the FHE, “the information of the countries suggests that the contraction of the credit, fruit of the international financial crisis, has been translated fundamentally in a restriction of the access to the credit for the consumers and not so much in an increase of the mortgage interest rates”. In fact, in some countries, like Spain, the mortgages got cheaper lightly in the first trimester of the year with regard to ends of 2007.
But the things have changed later. The report still does not gather the return of nut that the euríbor led during the second trimester. Especially in June, which took the average price of the new Spanish mortgages up to 5,90 %, according to the same indicator of the Spanish Bank that serves as base to the study of the European Mortgage Federation.
With this information and with the opinions about the financial institutions gathered in the Survey of Bank Loans, which the European Central Bank (BCE) prepares, the Spanish regulator comes to the conclusion that “during the second trimester, there have kept on hardening the conditions of family financing and companies, so much for the increases route in the cost of the funds, as for the application of more strict criteria of authorization on the part of the entities“. This way the Spanish Bank affirms it in his last Economic journal: the financial institutions not only give less money (as it was stated in the first trimester), but they give it more expensive.
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