Postive lending figures for June in Spain
Despite very positive figures in June for Spanish home loans this good news was tempered by the fact that the gap between new loans being constituted and loans being cancelled remains a porblem for the Spanish Banks.
Whilst 21,454 new home loans were up on the books in June and registered at land registry over 27,000 mortgages were redemmed or cancelled. After the boom of the first half of the decade and a lending market that was over exposed Spanish Banks looked to reduce their overall lending book.
This strategy was enhanced by increasing of margins and tightening of criteria and that along with the economic woes of Spain ensured that the mortgage loan book of all lenders decreased. considerably.
Spanish Banks want to increase lending
In the last few years the Banks have looked to stem this tide and have come back to the market with better mortgage rates and more pragmatic risk assessment. Despite all of this they seem unable to reverse the trend. A reducing mortgage book eventaully has a knock on affcet on the percenatge of bad loans against the entire lending book and will in the long term affect earnings.
Highlights for June data
For June numbers of new loans were up 8.7% on May, the first time in 5 years that June has outperformed the previous month. Capital lent increased by 31.1% against May, again for the first time in many years.
For the month of June loan numbers increased by 26.3% over June of last year and is up 21.1% anually accumalted for 2015.
Interest rates remain stable and floating rates the number one choice for borrowers.
Regional performance
Andalucia saw the most new loans in the month and was of those areas normally appealing to overseas buyers wishing to own in Spain the best performer in the Month.
Read the full article :- Despite increases in new Spanish mortgages net outflows remain in Spain
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