2023-09-06 09:19:00
A study carried out by OBS Business School shows that the mortgage payment paid by Spanish households represents an average of 45% of family income
This percentage, well above that of the European Union, is 15 points higher than what was allocated in 2021
46% of the Spanish population will have to allocate more than half of their salary to pay the mortgage
The mortgage is, by itself, one of the most important expenses within the budget of those who have chosen to own a home. But also, the escalation that the Euribor has registered in recent months it has seriously hit the pockets of many mortgagees. And although experts recommend that the effort to pay the mortgage loan not exceed 30% of incomea report by OBS Business School states that Spanish families allocate an average of 45% of their income to pay the mortgage.
And it is that, in 20 months, the Euribor, the main reference index for variable mortgages, has gone from the historical minimum of -0.505% that it marked in January 2021 to 4.073% with which it closed August. This represents an increase of 4,578 points, which, in many cases, has triggered the monthly quota. For example, those who have a 25-year mortgage of 150,000 euros with an interest rate of Euribor plus 0.75% contracted with the data for August 2022 and who check with that of this year will see how Your fee goes from 635.71 euros to 852.69 euros. This has caused that the effort that must be made to face the mortgage loan is greater and supposes 45% of the family income in many homes, 15 points more than the percentage it represented in 2021 and that it stood at 30%, according to the OBS Business School report.
Greater effort to meet the mortgage payment
In this sense, as stated in the study, at current housing prices, between 188,000 and 320,000 euros, to dedicate between 700 and 900 euros per month for 25 years to pay the mortgage payment, 46% of the population will have to make efforts close to 50% of the salary, much higher than the European Union average. This is a figure that is close to the effort that had to be made in 2008, in the midst of the real estate bubble, when 53% of the available annual income was allocated to the mortgage. The current percentage is very high, but it is far from that of 1990, when this effort reached 72% of family income.
In this sense, Carlos Balado, author of the report, points out that one of the main difficulties in accessing housing is the salary together with job stability. In fact, house prices have grown faster than wages. And while, between 2016 and 2021, salaries in Spain have increased by 5% a year, the price of housing has done so by 15.6%. In addition, according to the report, in the first quarter of this year prices have increased by 6.3%, and it is expected that in the remainder of 2023 they will rise another 2%. In this way, the cost per square meter has stood at 1,616 euros on average, with an increase of 0.8%.
Lower the contracting of mortgage loans
In this context, access to home ownership becomes difficult for many people, who neither have sufficient monthly income to pay the monthly installment nor do they have the necessary savings to pay the initial expenses involved in the mortgage. So it’s no wonder that the granting of mortgage loans has fallen. In May, the contracting of mortgage loans for the purchase of housing has decreased by 23.9% compared to the previous year, up to 25,754 operations.
As for theThe average mortgage in Spain has stood at 145,000 euros and it is paid with an average monthly outlay of 648 euros. The average contract period is 24 years. However, it shows that, throughout 2023, it is expected that the terms will be extended as a way to counteract the impact of the rate rise.
find the best Mortgages
Written by:
Multidisciplinary journalist specialized in economic information, marketing and advertising. She has developed her professional career in different media, mainly print and digital, also through institutional and corporate communication.
#money #pay #mortgage