The number of mortgages constituted on homes in the Balearic Islands in September has risen by 29.4% over the same month last year, after leaving negative rates and adding a total of 977 operations. Compared to the previous month, the increase in the community has been 41.6%, according to data published Thursday by the National Statistics Institute (INE). According to these data, 274.94 million euros were lent in the Balearic Islands for the constitution of mortgages on homes in September, 43.72% more of the capital loaned than a year ago. Compared with the previous month, the capital loaned to constitute mortgages rose by 56.7% In terms of total properties, a total of 1,230 mortgages were constituted in the region, with a capital outlay of 440.08 million euros. Of these, 38 were on rural properties and 1,192 on urban properties. Of the 1,192 mortgages constituted on urban properties in September in the Balearic Islands, 977 were on dwellings; 22 on plots of land and 193 on other types. The number of operations that changed entity (subrogations to the creditor) was 9 and in 4 mortgages the holder of the mortgaged property changed (subrogations to the debtor). Of the 260 mortgages with changes in their conditions, 247 were due to novation. On the other hand, 1,222 loans were cancelled on properties in the Balearic Islands. Of these, 803 corresponded to dwellings, 72 to rural properties, 333 to urban properties and 14 to plots of land.
Mortgages in Spain
The number of mortgages constituted on dwellings reached 41,306 operations in Spain as a whole in September, 33.9 % more than in the same month of 2023, which is the highest figure since September 2022 and the highest increase since September 2021, and their average amount grew by 4.5 %, up to 150,528 euros. The average amount of mortgages on the total number of properties registered in the land registries, from previously executed public deeds, decreased by 5.2 %, the INE indicates. In the first nine months of 2024, the number of mortgages for home purchases rose by 3.6% compared to the same period in 2023, and the capital loaned rose by 4.5%. In terms of interest rates, 61.4% of mortgages on homes were signed in September at a fixed rate, the highest percentage since May 2023, and 38.6% at a variable rate. The average interest rate was 3.14%, the lowest since April 2023, and the average term was 25 years; the average interest rate at origination was 2.92% for variable-rate home mortgages and 3.30% for fixed-rate mortgages. The total number of mortgages with changes in their conditions registered in the property registries increased by 15.7% in annual rate in September. Renewals – modifications with the same financial institution – grew by 40.0 %, while subrogations to the debtor, in which the holder changes, fell by 58.6 %. Subrogations to the creditor, in which the financial institution changes, fell by 76.8 %. In addition, 77.0 % of the 11,519 mortgages with changes in their conditions were due to changes in interest rates.
Autonomous Communities
Breaking down the data by Autonomous Community, those showing the highest annual variation rates in the number of mortgages on dwellings in September were Galicia (73.7%), Extremadura (55.6%) and La Rioja (50.3%). At the other extreme, the lowest increases occurred in the Community of Madrid (19.6%), Catalonia (28.6%) and the Community of Valencia (29.1%).
