The Balearic Islands registered 726 home mortgages in May, which is an increase of 16.5% from April and a drop of 42% compared to May last year.
The decline is largely due to the coronavirus pandemic and is one of the biggest drops in the country.
Borrowed capital amounted to 131.5 million, down 27.3% compared to the same period in 2019, according to the latest data from the National Statistics Institute, or INE.
The signing of mortgages for any type of property in the Balearic Islands reached 1,009 in May, with a capital of 280.5 million and 43 mortgages were for rustic farms and 966 for urban estates.
The number of mortgages for home buyers in May in Spain plummeted by 27.6% year-on-year to 25,538 and is the biggest decline since September 2019, according to the INE.
The average amount of a home mortgage was 127,145 in May, which is an increase of 3.2% compared to the same month in 2019.
The total number of mortgaged properties for any use fell by 28.7% in May, to 34,759, and the total capital loaned fell by 28% to 5,095 million euros.
In housing, borrowed capital stood at 3,247.0 million, with an annual decrease of 25.3%. The average mortgage amount on the total number of properties registered in the property registers in May was 146,584 euros, up 1% compared to the same month of 2019.
Home mortgages accounted for 63.7% of the total capital loaned in May, the average interest rate was 2.49%, and the average term was 23 years.
50.5% of mortgagees opted for a variable interest rate, and 49.5% for a fixed rate with an average interest rate of 2.11% for variable rate mortgages and 3% for fixed rate mortgages. The average interest rate for home mortgages was 2.48%, and the average term was 23 years.
47.2% of mortgages on dwellings were made at a variable rate, and 52.8% at a fixed rate; and the average interest rate was 2.12% for variable-rate mortgages and 2.87% for fixed-rate mortgages.
The total number of mortgages with changes in conditions was 4,756, which is 23.6% less than in May 2019.
Considering the type of change in the conditions; in May there were 3,473 novations, or modifications produced with the same financial institution, with an annual decrease of 34.8% and the number of operations that changed entities, or subrogations to the creditor, rose by 69.7%, while the number of mortgages in which the owner of the mortgaged property changed, or subrogations to the debtor, fell by 35.1%.
The regions with the highest number of mortgages on houses in May were Madrid with 4,979, Andalusia with 4,777 and Catalonia with 4,311.
The Communities where more capital was loaned for mortgages on homes were also Madrid with 886.6 million euros, Catalonia with 633.3 million and Andalusia with 496.7 million euros.
The Canary Islands is the only community with a positive annual variation rate of 2%.
The greatest decreases were registered in Extremadura with 51.8%, Castilla La Mancha with 44.8%, Asturias with 44.7% and the Balearic Islands with 42%.
The only community with a positive annual rate in the number of mortgages on homes was The Canary Islands with 0.1%.
Those that registered the smallest decreases were Galicia with -10.0% and Cantabria with -13.2%.
Those with the biggest decreases were Extremadura with -49.5%, Asturias with -48.3% and Castilla La Mancha with -48.1%.