Thursday 8 January 2015

Spains secured credit data for October

Loans granted


In October the average size of loan granted fell by a small amount but numberts year on year were well up meaning capital lent increased in October 2014 to October 2013 levels by 21.7% for urban property and by 14.9% for other dwellings.

The amount of new credit for all dwellings reached over 5.000 million.

Month on Month


In general the overall numbers and capital lent between September to October as a trend dropped. This was partly due to the fact that September 2014 was a particularly bouyant month and that in the months running up to October there has been a marked increase in the amount of Spanish Loans granted and signed for.

Interest rates


Interest rates fell both month on month and year on year as Spanish Banks reduced margins and improved product terms to try and grab market share and the 12 month Euribor the main index to which credit in Spain is linked fell to an all time low.

Most loans completed as is normal in Spain on a variable rate basis with less than 8% of loans being taken on a fixed rate.

Cancellations


For another month despite the positive news mortgages being redeemed exceeded new loans being constituted. This trend will continue to put pressure on Banks earnings as the mortgage books continue to diminish. It is hoped 2015 will reverse this trend and that a net gain on numbers and capital lent will be added to the loan books.

Read the full article: Secured lending statistics in Spain

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