The rating agency Fitch warns that the increase in the price of mortgages due to legislative changes and the increase in the price of housing will make it more difficult for Spaniards to access housing.
Fitch estimates that house prices will rise by an average of 5% in 2019 and 4% in 2020, compared to salaries that will increase at a slower pace than housing, especially in large cities. Mortgage loans are expected to become more expensive in the country as a result of the regulatory changes introduced last November, obliging the bank and not the client to pay the stamp duty tax tax (AJD).
According to Fitch, in 2019, at least half of new mortgages will be contracted at a fixed rate, in anticipation of a rise in interest rates. The agency also expects the growth in mortgage loan issuance to slow down to 7.5% in 2019 and 5% in 2020, compared to an estimated 10% in 2018.
Stan Dickens (FRICS) is a UK qualified Chartered Surveyor who has practiced in Spain and Portugal since 1989.