Net outflows for lending widen in March

Lending news for Spain remains relatively upbeat in March, except when considering net outflows.

Data issued today by the INE in Spain showed a continuing rise in loan levels in Spain where it relates to mortgages for homes.

Capital lent, number of new loans registered and average loan size all increased against the same month of the previous year.

Against the previous month of February whilst not out of sync with normal yearly trends the figures were not so bouyant. Overall numbers were down with the most significant change being a large drop in average loan size.

Index

Euribor remained the favoured index and varibale rate products continued to form the bulk of mortgage prodcut type completions.Whilst we have seen Spanish Banks launch new and more competative fixed rates in the last few weeks this has not as yet filtered through to changes in the type of loans being completed on.

Interest rates

Average interest rates were down to 3.36% in March partly due to the falling Euribor level but also in part due to a more competative general environment.

Regionally the Canaries had a dire month and Andalucia did not perfrom as well as normal. Madrid had the most capital lent with Cataluna not far behind. The Balearics showed considerable increases within the months against a backdrop of stagnant figures for the first couple of months of 2015.

Net outflows

Net outflow figures widened in March after narrowing in February. Spanish Bank continue to grapple with more loans cancelling than new loans going onto the books and the subsequent challenge this will cause for future earnings.

Read the full article :-Lending registered at Land registry up year on year.