Interest rate margins on mortgages decrease

Published:

16 November 2017

The interest rate margins on new and outstanding mortgages to households decreased in September. The fixed-interest rate on new mortgages decreased by 0.02 percentage points in September, while the floating rate was stable.

Full set of figures
Interest rates in banks and mortgage companies

Series archive
Interest rates in banks and mortgage companies (archive)

In September, the interest rate on new mortgages to households from a sample of banks and mortgages companies was stable at 2.49 per cent. The fixed-interest rate on new mortgages decreased by 0.02 percentage points to 2.45 per cent in September, while the floating rate was stable at 2.49 per cent.

The interest rate on outstanding mortgages remained stable at 2.53 per cent. The fixed interest rate on outstanding mortgages continued to fall and went down by 0.02 percentage points to 2.84 per cent.

Figure 1. Interest rates on new and outstanding loans secured on dwellings to households. Monthly sample of banks and mortage companies

	New loans, floating interest rate	New loans, fixed interest rate	Loans outstanding, floating interest rate	Loans outstanding, fixed interest rate
Feb. 2015	3.11	2.53	3.52	3.80
Mar. 2015	3.08	2.53	3.25	3.65
Apr. 2015	3.09	2.55	3.23	3.54
May 2015	3.07	2.6	3.22	3.46
June 2015	3.00	2.71	3.19	3.4
July 2015	2.87	2.73	3.15	3.38
Aug. 2015	2.83	2.7	2.93	3.36
Sep. 2015	2.78	2.71	2.91	3.4
Oct. 2015	2.60	2.61	2.88	3.33
Nov. 2015	2.57	2.51	2.77	3.29
Dec. 2015	2.54	2.51	2.65	3.28
Jan. 2016	2.55	2.48	2.64	3.26
Feb. 2016	2.50	2.39	2.63	3.24
Mar. 2016	2.48	2.23	2.61	3.22
Apr. 2016	2.40	2.22	2.59	3.20
May 2016	2.37	2.27	2.51	3.18
Jue 2016	2.38	2.26	2.47	3.16
July 2016	2.38	2.26	2.46	3.12
Aug. 2016	2.35	2.32	2.46	3.10
Sep. 2016	2.36	2.32	2.45	3.07
Oct. 2016	2.38	2.46	2.44	3.03
Nov. 2016	2.43	2.56	2.45	2.99
Dec. 2016	2.44	2.70	2.45	2.96
Jan. 2017	2.47	2.77	2.53	2.95
Feb 2017	2.49	2.76	2.53	2.94
Mar. 2017	2.52	2.70	2.53	2.93
Apr.2017	2.52	2.64	2.53	2.92
May 2017	2.51	2.48	2.52	2.9
June 2017	2.51	2.50	2.52	2.88
July 2017	2.51	2.47	2.51	2.86
Aug. 2017	2.50	2.47	2.51	2.86
Sep. 2018	2.49	2.45	2.50	2.84

Decrease in the interest rate margin

The interest rate margin on new and outstanding mortgages to households decreased by 0.03 and 0.02 percentage points respectively, to 1.67 and 1.71 per cent in September. NIBOR went up by 0.02 percentage points in the same period to 0.82 per cent.

Figure 2. Interest margins on new and outstanding loans with a mortgage to households. Sample of banks and mortgage companies

	Loans margin, new total loans secured on dwellings	Loans margin, total outstanding loans secured on dwellings	NIBOR
Feb. 2015	1.64	2.17	1.37
Mar. 2015	1.49	1.79	1.50
Apr. 2015	1.48	1.73	1.53
May 2015	1.52	1.76	1.48
June 2015	1.61	1.85	1.36
July 2015	1.57	1.88	1.29
Aug. 2015	1.67	1.83	1.15
Sep. 2015	1.64	1.82	1.14
Oct. 2015	1.49	1.81	1.11
Nov. 2015	1.37	1.62	1.20
Dec. 2015	1.38	1.56	1.15
Jan. 2016	1.36	1.51	1.19
Feb. 2016	1.43	1.61	1.07
Mar. 2016	1.45	1.65	1.02
Apr. 2016	1.38	1.63	1.01
May 2016	1.38	1.58	0.99
Jue 2016	1.34	1.50	1.03
July 2016	1.31	1.45	1.07
Aug. 2016	1.26	1.42	1.09
Sep. 2016	1.19	1.33	1.17
Oct. 2016	1.27	1.37	1.12
Nov. 2016	1.28	1.34	1.16
Dec. 2016	1.27	1.30	1.19
Jan. 2017	1.45	1.52	1.04
Feb 2017	1.44	1.5	1.06
Mar. 2017	1.54	1.57	0.99
Apr. 2017	1.54	1.57	0.99
May 2017	1.59	1.63	0.92
June 2017	1.67	1.71	0.84
July 2017	1.68	1.71	0.83
Aug. 2017	1.70	1.73	0.80
Sep. 2017	1.67	1.71	0.82

Low interest rate on loans to non-financial corporations

For new other repayment loans to non-financial corporations, the interest rate decreased by 0.02 percentage points to 2.84 per cent in June, while the interest rate on outstanding loans fell by 0.03 percentage points to 2.88 per cent.

Low deposit rates

The interest rate on deposits from non-financial corporations fell by 0.01 percentage points to 0.61, and the interest rate on total deposits from households increased by 0.01 percentage points to 0.77.

Low interest rates in banks (complete census)

The quarterly interest rate statistics (complete census) show that interest rates on loans from banks and interest rates on deposits were 3.42 and 0.82 per cent respectively.

The interest rate from state lending institutions fell by 0.08 percentage points to 1.75 per cent from June 2017 to September 2017. The interest rate on loans from the State Pension Fund was stable at 2.20 per cent.

Decreased share of fixed-interest loans (complete census)

The share of fixed-interest rate loans secured on dwellings to households from banks and mortgage companies fell from June 2017 to September 2017; from 7.3 per cent to 6.8 per cent. The share of fixed-interest rates has decreased in the last eight quarters.