In Europe, mortgage interest rates have risen dramatically since 2022, making home financing more expensive and leading to a worsening homebuyer sentiment. To tackle
, which resulted in higher interest rates for mortgage loans by banks and other lending institutions. Between 2022 and 2023, mortgage rates in many countries
. In the UK, the value of new mortgage loans in the first quarter of 2023
from the same period in 2022. In Germany,
between March 2022 and October 2023.
Which are the largest European mortgage markets?
Mortgage markets are shaped by the conditions of the housing market and the broader socio-economic landscape. In some countries with developed mortgage markets, such as Iceland, the Netherlands, Norway, and Sweden over 50 percent of the population
resides in a home financed through an outstanding mortgage loan. In Central and Eastern Europe, on the other hand, the mortgage market is less advanced, and most people have no outstanding loan. In terms of the
value of mortgages outstanding or
new mortgage lending, the largest European markets are the United Kingdom (UK), Germany, and France. In the second quarter of 2023, the UK mortgage market amounted to roughly 1.9 trillion euros in mortgages outstanding and 60.7 billion euros in new lending. Germany secured the second position with 1.8 trillion euros in outstanding mortgages and 48 billion euros in new mortgage lending.
What drives the European mortgage market?
The demand for housing plays a crucial role in influencing the mortgage market. An increase in housing transactions and rising house prices typically result in higher lending volumes. In Europe, house
prices began to rise following the global financial crisis, driven by low mortgage rates and improving economic conditions. Stable employment and income growth enable individuals to strategically plan their home purchases and save for down payments. However, in 2022, there was a
noticeable decline in the savings rate of European households, primarily due to a surge in inflation. The future trajectory of the market will largely depend on inflation trends and the European Central Bank's decisions regarding interest rates.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
