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Families with mortgages complain about the rise in interest rates - El Cronista
Source:
June 11, 2024
Almost half of Spanish households with mortgages were "very affected."
46% of Spanish households with mortgages were "greatly affected" by the rise in interest rates and to cope with this situation, one in three reduced the budget allocated to other expenses, such as clothing and footwear, restaurants and hotels, and also leisure and culture.
These are some of the main conclusions of the third edition of the Observatory of Economy and Sustainability in the Home , a survey carried out at the end of April on more than 1,650 people, and presented this Tuesday by Cofidis in a press conference, which also breaks down the data by region.
The impact of the rise in mortgage rates has been particularly noticeable in households in Extremadura, 58% , and in those in Murcia, 56% , while on the other hand, where it has had the least impact, it has been in families in the Canary Islands and Galicia, 38% in both cases.
In general, the increase in mortgages has forced 8 out of 10 families to make an effort to reduce their expenses to pay the installment, 10 percentage points more than in 2023.
The increase in mortgages has forced 8 out of 10 families to make an effort to reduce their expenses.
Beyond the increase in rates, in the case of rents , the increase in prices has had a "very negative" impact on 60% of families , who have had to cut expenses in a similar proportion to those with mortgages, close to 80%, and 16% have used savings.
The survey also reveals that despite some improvement in the economic situation, the savings capacity of Spanish households is not increasing and almost one in four households is still unable to save money at the end of the month.
The autonomous communities that have the most difficulties saving at the end of the month are Murcia, the Canary Islands and Extremadura, with 31, 30 and 29%, respectively.
The polarization of society
Compared to 2023, the economic situation of households regarding their income tends to become polarized, which reduces the middle class. Thus, those households in Spain that earn less than 1,000 euros increase from 5 to 8% and those that earn more than 4,000 increase from 9 to 14%.The observatory detects that there are still 21% of households that provide financial help to people outside the household. Approximately 13% of households receive help and in 68% of cases this help is from parents to children and in 71% it is given every month.
The good news is that the ability to face unforeseen expenses has improved and now the number of households that could not face an unforeseen event of 10,000 euros is 34%, compared to 64% two years ago, and those that could not face an expense of 5,000 has dropped to 27%, compared to 41% previously.
For the highest amounts, families turn to banks and financial institutions, rather than asking family and friends for help. For amounts of less than 10,000, the weight of the credit card is increased.
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