Recovery for loans in Spain

September Mortgages in Spain

After a rather volatile month August Mortgages in Spain showed good growth again in September.

Average loan sizes grew considerably both month on month and year on year. The level of capital lent increased again month on month and year on year and for the first time in many years there was significant mortgage book growth for the Spanish Banks within the month.

over 8,000 new loans were constituted than loans redeemed.

Rates rise slightly

Interest rates spiked slightly increasing as an average for both variable rate products and fixed rates. This may move down again in the coming months as at least one major lender decreased fixed rates in November.

Overall the average interest rate was 2.83%.

Home loans

The amount of new mortgage applications being granted for the purchase of a home moved up from August levels where it dropped to below 60%. The percentage of loans given for buying a home went back up to normal levels of circa 63%.

Catalanu after a poor performance in August saw mortgage activity increase again but remains behind in increases to the other key regions of Madrid, Andalusia and Valencia.

The Canary Islands due to lower levels of new Spanish loans in the early months of the year is one of a handful of regions who is down annually. The Balearics on the other hand as a percentage are the highest in terms of annual increases but against limited numbers.

Read the full article:- Residential loan activity in Spain