The citizens of the CAV allocate 30% of their income to pay the mortgage
A report from the Basque Housing Observatory has measured the impact of the Euribor rise in the Basque Country. For now, the rise in interest rates would not be affecting the number of mortgages applied for. The average monthly mortgage payment is 720 euros.
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The average amount of the mortgage in the Basque Autonomous Community was €163,000 in 2022, 13,000 more than in 2019, and the average monthly fee stands at 720 euros, 49 euros more than the average in Spain. Thus, the citizens of the BAC allocate 30% of their income to mortgage payments, four points more than six years ago (26%).
These are data published by the Basque Housing Observatory of the Basque Government after measuring the impact of the Euribor —in March it stood at 3.647%—, on Basque families. The study confirms, among other things, that the average level of indebtedness is very different depending on the location of the dwelling, being considerably higher in Gipuzkoa and Bizkaia than in Álava.
For the moment, the rise in interest rates would not be affecting the number of mortgages applied for, which continues to show a growing trend: in 2013, 12,146 mortgages were signed and last year, 22,905. However, the report points out that it is still very early to see the effects of the rise in the Euribor in the granting of mortgages and adds that the consequences of the tightening of the conditions of access to credit for households and companies will be seen throughout 2023.
What is already perceived is a change in the type of mortgage: in 2022, fixed-rate mortgages already exceeded half of the total number of mortgages constituted. Six years ago, 90% were variable rate.
Likewise, the report from the Basque Housing Observatory concludes that this year and the following could increase the number of people who have to pay installments that are above 30% of income, the limit of what is considers tolerable.
Source: Eitb
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
