NEW mortgages in Spain are more expensive than elsewhere in Europe, according to a report.
Joaquin Maudos, a professor at the University of Valencia and the report’s author, explained the average interest rate charged on mortgages in Spain is 2.02 per cent, compared to 1.83 per cent across Europe.
The academic explained interest rates had risen over the last three months in Spain, owing either to uncertainty over a recent Supreme Court ruling on mortgage tax changes, or in response to recent government legislation over the same tax.
In his report, Professor Maudos added: “There are no objective reasons to think that a real estate bubble is forming.”
He explained current figures showed Spain is only responsible for granting 5 per cent of all mortgages in Europe, compared to 20 per cent before the financial crash.