Spanish loans increase again in June
June showed a further increase in lending over both May of this year and year on year.
Whilst numbers of loans was were down on May levels the average loan size meant that capital lent increased. Year on year the number of loans granted are up 19% accumulated and capital lent up 21.9%.
Mortgages in Spain for the purchase of a home increased in percentage of total new credits in the month of June making up over 60% of all new contracts.
Fixed rates
In a continuing theme for 2016 fixed rate products increased in the share of the total new credits contracted. From a base a couple of years ago of 6% to 7% of all loans, fixed rates now form over 23% of all new lending. This is a fundamental shift for Spanish Banks who up until recently did not often offer a fixed rate at all. Previously all lending was made on a variable rate basis.
Regional performance
Over 2016 the only region to exceed new mortgages made over loans cancelled and redeemed is the Balearics. All other regions still show a net outflow. This is not good news for the Spanish Banks as the contracting mortgage book is and will continue to put pressure on interest earnings and profit from attached products.
Interest rates
Average interest rates increased very slightly in June which may be a reflection of the level of higher but more stable fixed rate solutions now favoured by both Banks and mortgage applicants alike.
Read the full article :- Lending data for June
