Despite the fact that the main indicators already announce a drop in the volume of mortgage transactions, mortgage subrogations do not stop growing. The change of financial entity to improve mortgage conditions doubled compared to the first quarter of 2022 and already represents 10.7% of the operations closed by idealista/mortgages, according to a report by Idealista.
It details that the most valued option when making the improvement change is the mixed mortgage, a modality that allows paying a fixed interest during the first years of the life of the loan, and a variable one for the rest of the repayment period. If during the first quarter of 2022 the mortgage improvements that changed to a mixed rate represented 12.5% of the subrogations, one year later (first quarter of 2023) they reached 50%.
However, this option is not preferred among the new mortgagees, who continue to opt for fixed interest, with 53% of the total. Mixed mortgages have grown very strongly to account for 37% of all those granted, compared to 6% that they accounted for just a year ago. Variable-rate mortgages make up 11% of the total.
On the other hand, 33.6% of the mortgages signed during the first quarter of 2023 had a financing need of less than or equal to 70%. Of these, 9.8% requested less than 50%, 9.3% between 50% and 60% and 14.5% between 60% and 70%. Financing of between 70% and 80% of the appraised value is the most frequent operation (45.2% of the total), followed by those that request between 80% and 90% (20.3%).
82% of the mortgages that were signed during the first quarter were granted for habitual residence, while only 3.9% were for second homes. In addition, the level of indebtedness reached by the families that signed a mortgage during the first quarter of the year was 26% of their available net income.
BUYER PROFILE
The report also analyzes the profile of the buyer and, if in Spain, the average age to acquire the first home is 38 years, in Castilla-La Mancha this average age drops to 35 years. Of course, in Albacete, the average age rises to 36, one year more than in the region in general.
The average mortgage requested in the region is 106,000 euros and to meet its payment, the Castilian-La Mancha must allocate around 24% of their salary.
The average mortgage requested in Albacete is usually 108,000 euros and the debt is also at 24%.
