2017 January Spanish lending grows

The first month of the new year saw positive growth in Spain for new lending contracted.

Loan levels increase

Across the board all regions increased year on year and month on month in terms of numbers of loans and capital lent.

Spanish Banks will be happy to see that for only the second time in many years the amount of newMortgages in Spain taken was greater than the amount of loans cancelled.

Fixed rate products

Fixed rates continued to grow as the choice of borrowers and now makes up well over 30% of all Mortgages in Spain completed within the month.

A wide range of fixed rates are now available from most lenders with fixed rate terms ranging from 5 years to 30 years. Due to a lack of re-mortgage facilities in Spain and the high costs of taking a loan to a new lender, fixed rates are a very viable option for borrowers.

Spanish Banks have very keen pricing on their fixed rates products and whilst still above the variable rate options due to the low Euribor, they appear to provide a very good medium to long term option.

Best performer the Balearics

Regionally all regions performed above December of 2016 and January 2016. the Balearics had the highest percentage increases and the Canaries the lowest.

Read the full article :- Positive start for 2017 for loans in Spain

2016 mortgage market overview

Spanish lending performance in December.

December saw a mixed month of mortgages in Spain with most regions showing numbers below those of November but all increasing year on year.

Average loan sizes rose in December so despite the drop in numbers the actual capital lent did not fall so heavily.

Full year results

Across the whole year, now the full 12 month completions data is available, Spanish lending saw it best year since 2012.

Total numbers of new loans and capital lent grew in all regions over 2015 although the pace of growth was a little behind 2015 to 2014 levels.

Fixed rate growth

2016 saw the mix of variable rate product types drop and fixed rate product types grow dramatically. All Banks in Spain launched fixed rate products and the share of the total new lending market grew from around 5% to over 30% in 12 months.

Net outflows continued to be a problem with over 28,000 more loans being redeemed than new loans being constituted. This has now been the case for every year since the banking crisis.

Brexit impact

Brexit hit non resident loan levels for a couple of months but UK applications have increased for the first two months of 2017. Whether the triggering of Article 50 pushes this backwards will be clear over the next few weeks.

Read the full article:- 2016 mortgage market in Spain