Spanish banks
Spanish banks have been hit by a court judgement in the last couple of months that has not only outlawed floor rates but has stated that compensation should be paid for at least those mortgages in Spain completed since 2013.
The judgement will hit earnings and in an effort to avoid future problems many of the banks in Spain are looking at growth strategies outside Spain.
A few of the lenders are proactively approaching mortgagees with floor rates and offering good long term fixes for the benefit of signing away any rights to future action against them.
House sales in February
According to both the notary offices and land registry house sales continued to grow in February. Average price per square meter fell by a small amount but overall sale of homes climbed year on year and against January 2016.
Whether this trend will continue due to the political uncertainty etc will remain to be seen. Certainly the Spanish banks relaxed criteria for lending in the quarter according to the findings of the Bank of Spain. The relaxation of criteria was to help keep mortgage growth moving forward as demand whilst up from previous levels is still seen as weak.
Mortgages in Spain
Lending levels grew both for those registered at land registry and signings within the month of February. Average interest rates rose slightly reflecting the shift from variable rate products to slightly more expensive but more stable long term fixes. Best buys reflect this.
The percentage of loans registered as fixed rate product type was the highest in history in February and should continue to grow.
Net Outflows
More loans were redeemed in the month than new loans constituted so the challenge remains in Spain the same. How to grow the loan books.
Read the full article:- Mortgage in Spain data improves
