How does inflation affect mortgage loans in Spain?
The effects of the inflation that is taking place in are having an increasing impact on a greater number of areas of the Spanish economy. One of the most affected areas is mortgage loans. The impact of inflation has resulted in slightly more expensive mortgage loans, therefore, in our article, we give you all the details of how inflation affects mortgage loans . Although, don’t worry, if you want to get a mortgage , you can continue doing so with good conditions thanks to Housfy and our agreements with more than Spanish banks. Find the best mortgage without mistakes Going from bank to bank is a thing of the past.
How does inflation affect mortgage loans?
And after price increases due to inflation, the most important banks in the country, which take care of the well-being of their monetary area, use the interest rates on loans to stimulate or discourage consumption. It is for this reason that the interest rate increases Azerbaijan Email List that the European Central Bank is carrying out this year seek to stop inflation . To carry out this action, the ECB increases the value of money by raising interest rates. This results in fewer mortgage applications and therefore less investment. This is because in this type of mortgage, the amount of interest paid month to month is the same.
Variable mortgages, the most affected
Variable mortgages are the loans that suffer the most from the consequences of the ECB’s decisions. Thus, those taking out variable mortgages will pay more when the value of this reference index increases and will pay less when its value decreases. Due to the Philippine Email List rise in the Euribor during these months, applications for mortgages with variable rates have decreased and fixed rates have taken the lead, which had not been the favorites of mortgage loan applicants in Spain for years . Effects of mixed mortgages, it depends on the type you are paying now Mixed mortgage loans are those that combine the fixed interest rate during the first years of the mortgage amortization and the variable interest rate until the end of the amortization period.