Levels of lending in Spain during October
Levels of borrowing in Spain fell from the previous month of September but remained up on the same month of 2015.
This data is in line with normal market trends where only once in the last 5 years have Spanish Banks increased their completions in October over September.
Average loan amounts
Average house prices nationally continue to fall and this is reflected in the average loan size. Regionally the fall in house price and loan size is not across the board with certain hotspots seeing increases.
October was a bad month for levels of loan registered within most of the traditional holiday home regions this may be due to UK buyers holding off somewhat until the impact of Brexit is known.
Product types and interest rates
Mortgages in Spain completed with a slightly lower percentage being contracted on a fixed rate product type basis and interest rates rose very slightly.
Best buys in terms of fixed rates are not now as competitive as they were as cost of funds have risen in the market.
Loan cancellations
Loan cancellations which were below new borrowings in September increased again in October giving a negative outflow for Spanish Lenders.
Based on completions our prediction is that lending levels will be buoyant for the last two months of the year.
Read the full article:- October Mortgage completions in Spain
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