Lending in Spain increases in May

Mays lending data

Lending in Spain saw a marked increase in May after the very low levels seen in April.

The increases were across the board in all areas including numbers of, average loan size and capital lent.

Whilst it is normal for May to be an improvement on the April the month over month increase was the highest percentage for over 5 years.

Interest rates

After a couple of months of rates edging up despite the Euribor dropping May saw average interest rates drop to 2.9% this was a big reduction from the previous month in percentage terms.

Fixed rates as a mortgage product type seem have stabilised at around 35% of all new loan contracts well up on previous years but stalling slightly in the last couple of months. Whether this is clients choosing not to take fixed rates because of lower margins being offered and the current low level of the Euribor or if the Banks are choosing to move away a little from long term but low fixed rate offerings is not as yet clear.

Spanish Banks

All leaders are currently hungry for new business and are way off lending target levels.

Competition is increasing again as we passed the half way point in the year.

On the positive side more loans were constituted in Spain inMay than cancelled this being for only the second month in nearly 10 years.

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