The province has one of the lowest “per capita” income in the country with an average salary of 17,205 euros per year. Furthermore, half of the wage earners have an annual income of less than 10,000 euros, or, according to data published by the Ministry of Finance, 236,223 people live on less than 824 euros a month. In a year marked by the war of Ukrainethe resulting crisis energetic and with a prediction that places the IPC annual average of 8.4%, many families were forced to request a loan to be able to deal with Christmas shopping, to renew the vehicle or make some repairs at home.
According to data from the Lendo platform, one of the largest online loan comparators in Europe, requests for credits in Andalusia remained at low levels during the first quarter of this year, but since March the applications have started to increase to reach highest peaks in June and November, coinciding with the beginning of the summer and Christmas holidays; each of these months concentrated over 13% of the year’s requests. Seville, Malaga and Cadiz are the provinces where the highest number of online loans requested has been recordedwhile Jaén, Córdoba and Huelva received fewer requests for funding.
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Source: INE
Plug the holes
The average profile of the credit applicant is that of a person from 38 years oldprofessional Tavern (12.7%), technicians (11%) or rural workers (10%), requesting funding for an average amount of 5,608 euros repay in an average term of 44 months. 60% of applicants are men compared to 40% who are women. Nearly 20% of applicants will use credit money to meet the household expenses (purchase of furniture, reforms or concepts related to housing expenses), 12% to debt reconciliation and 11% to the purchase of second-hand vehicles.
As manager Antonio Roncero explains, comparing loans is important because the customer can save a lot and “usually the greater the greater the credit. In addition, each financial institution has certain conditions and it is important to know whether they will charge us fees for opening and the interest rate. Obviously it is always better to ask the money to whoever offers us to minor interest».
13.4% of the applications registered in Andalusia took place in the month of November (5,851 euros on average), recording a significant increase compared to the previous months and exceeding the month of October by four points. Very close, the month of June collected 13% of applications with an average of 5,531 euros. It’s also surprising average amount increase recorded in July, perhaps prompted by the proximity of the summer holidays. Thus, in July the average was 6,111 euros per request compared to the average 5,112 euros recorded in October, the month with the lowest request for money.
Mortgages
In the province they were signed last month October 1,612 mortgages for an average value of 166,716 euros, according to INE data. The figure puts Cadiz in third position for the number of mortgages granted, behind only Seville (2,494) and Malaga (2,257).
But if in 2016 the fixed rate mortgages they made up just 10% of new mortgages, now they are almost 70%, according to data from the National Institute of Statistics (INE) published in October. An exponential growth driven by the instability of eurybor (reference index on which the interest rate to be paid is calculated) and which has forced customers with loans to variable rate to cope with an increase in their quotas. A scenario that was presented as highly unlikely but became real. Let’s not forget that the Euribor was negative for six years up to April 2022, for the first time, turned positive. Since then, the bullish climb has been unstoppable and chained. Many families drown because they have to allocate the bulk of their economic resources to pay the mortgage. “A roof to live in comes first,” they repeat.
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November 2022 2.828%
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October 2022 2.629%
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September 2022 2.233%
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August 2022 1.249%
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July 2022 0.992%
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June 2022 0.852%
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May 2022 0.287%
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APRIL 2022 0.013%
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March 2022 -0.237%
To address this situation and avoid family delinquency, the CCOO will propose to the Government a Mortgage price control to limit interest rates and to facilitate the type change variable at a “reasonable” fixed rate, as reported by the union’s public policy and social protection secretary, Carlos Bravo. In line with the urgent economic measures that the Government intends to announce on December 29, Bravo has called for a policy of control. «It is necessary to act with transparency, converting variable rates into reasonable fixed rates and for the State to limit interest rates, similar to the type of usury which France has. The union also asks to guarantee this quotes mortgages are “assumable” by households, ie that the payment of the mortgage does not represent more than 30% of the income, lengthening the repayment term.
