Spaniards Raid Savings to Pay Mortgages, Germans Do the Opposite
- ECB rate hikes hurt some homeowners more than others
- Most Iberian homeowners have mortgages that vary with ECB rate
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Surging interest rates have triggered vastly divergent reactions from European homeowners, with Spaniards rushing to pay off mortgages, while Germans are pulling back.
In the first five months of 2023, early repayments jumped 24% in Spain and 23% in Portugal , according to Bloomberg calculations based on data from the European Central Bank. That compares with a drop of 39% in Europe’s largest economy and 42% in the Netherlands.