New mortgages increase for 6 months in a row.
The number of new loans registered at land Registry in Spain showed another increase in lending for the purchase of homes when compared to the year of 2013.
Both numbers of loans and capital lent has been slowly but steadily increasing in the latter part of 2014.
Average loan sizes
In line with the fact house prices continue to ease downwards average loan size fell again in the month of November but this did not prevent a healthy increase in the overall amount of money lent and new mortgage applications made.
Interest rates
Average interest rates continued to drop being some 18% lower than this time last year partly due to the 12 month Euribor decreasing and partly due to Banks shaving margins throughout 2014 to try and attract new business.
The increase in new loans is also having a positive affect on the percentage of bad loans as a more healthly balance of performing loans to bad debt occurs.
Variable rates continued to make up the bulk of the products types with only 7.4% of all home loans completing on a fixed rate basis.
Bucking the positive trend
In a strange move given the more positive signs of 2014 Sabadell Bank increased margins on Monday the 26th of January. This unexpected backward move, supposedly put in place to make loans more profitable will hit the numbers of completions the Bank can make. From market leader Sabadell now sits well back in the pack when considering competitors and are against the trend with other Banks continuing to reveiw interest rate offerings downwards.
Mortgage redemptions
The news is not all good as canceled or redeemed mortgages continued to outstrip by quite someway new loans on books. The shrinking of loan books in Spain has now been happening for over 5 years and at present despite some positive signs this trend looks to continue for a while yet.
Read the full article:- New lending in Spain increases in November
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