Mortgage credit

In 2017 and for the third consecutive year the mortgage credit market recorded significant increases in the number of agreements concluded and the amount of credit granted, although to a lesser extent than in previous years. 77,506 new mortgage credit agreements were concluded and €7.7 billion was granted, corresponding to 32.3% and 40% growth rates respectively from 2016. However, the overall amount of the mortgage credit portfolio as at 31 December 2017 declined to €87.7 billion (€89.2 billion as at the end of 2016), since the increase in the number of agreements was not sufficient to offset early repayments and agreements maturing in that year.

The average amount and the average maturity of new mortgage credit agreements went up in 2017 compared to the previous year. The average amount rose from €94,160 in 2016 to €99,670 in 2017. The average maturity of mortgage credit agreements concluded in 2017 was 33.3 years, i.e. six months more than in 2016.

The most frequent type of rate in mortgage credit agreements concluded in 2017 continued to be the variable interest rate (81.3%), although its relative importance fell in comparison with 2016 (83.7%). By contrast, the number of mixed rate agreements increased significantly (68.3% more than in 2016) to a share of 16.9% in 2017 (13.3% in 2016). Fixed interest rate agreements played a less important role, accounting for 1.8% of new agreements, compared to 3% in 2016.

12-month Euribor was the most-used index (92.5% compared to 85.2% in 2016). The average spread in new mortgage credit agreements at variable interest rate declined in 2017, to stand at 1.74 percentage point (0.25 percentage points less than in 2016). This reinforced the downward trend observed since 2015, with the spread reaching a similar level to that of the agreements concluded in 2010 still in portfolio.

Last year there were 72,463 total early repayments in mortgage credit agreements, which amounted to €3.9 billion, i.e. 25.5% and 35% more respectively than in 2016.