Mortgage Interest Rates Fall to a new low in Spain

Mortgage interest rates in Spain have fallen close to zero in last month, representing yet another historic low, according to Euribor.

Euribor, the rate used to calculate most mortgage repayments in across Spain, fell month-on-month by 38% in November to 0.079 and by 76% year-on-year.

Like house prices, mortgage rates have declined over the years and are now hovering far below their 2008 peak of 5.393%.

Borrowers could potentially save around €161 per year, based on a 20 year mortgage of €120,000.

The decrease in interest rates is largely down to the European Central Bank’s quantitative easing programme; in March 2015 the QE programme was introduced to stimulate lending in the Eurozone by relieving European institutions and national agencies of some of their debt by the purchase of sovereign bonds and securities.

The ECB is now considering increasing the €1.1 trillion QE package due to disappointing economic growth, meaning mortgage interest rates could fall below zero in the future.