What were the key points
For the first time in many months we finally saw a small increase in both the numbers of mortgages granted in Spain and the capital lent.
The largest increase was however in the lending to small and medium sized business as the number of Spanish loans granted for dwellings showed a much smaller percentage increase than the overall lending picture.
Why is this
Since the beginning of the year Spanish Banks have been in a price war offering lower rates to attract back business loans and get credit flowing into the economy and this now seems to be filtering through into the numbers.
ators for total lending
Residential loans in Spain
Whilst loans to dwellings did increase in the month it was a much slower rate than the indicators for total lending. Average loan size showed a year on year increase but was static in comparision to February and numbers were up slightly year on year for the month. Overall for the year of 2014 there has been a drop of 24.2% for the first 3 months of the year in comparision to 2013 but this should change as we go through the year.
The biggest challenge for Spanish Banks
The biggest challenge for Spanish Banks is to halt the ongoing net outflow of mortgages. A continuing outflow of loans will affect long term earnings and for yet another month the amount of mortgages redeemed outstripped new loans consituted by a huge amount.
Read the full article : Mortgage news Spanish lending indicators
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