Tuesday 3 April 2018

Spanish loans increase in January

January lending data


January loan figures in Spain as published by the INE and from newly registered lending at land registry saw big increases in both number of new new mortgage contracts and capital lent.

Struggling regions see a turn in fortune


Even in regions where the numbers of new loans were lower than December due to the average loan size being greater all regions managed to show an increase in capital lent.

Catalonia who have suffered since midway through 2017 due to the unrest saw massive bounce back in the month both over the previous month and the same month of the previous year.

Murcia who struggled all of last year also had a very good month.

Interest rates drop but there could be pressure coming.


Interest rates for variable rates are down 14% on last year and fixed rates down 5.5%. The euribor held steady in the month at minus 0.191%.

Fixed rates as a percentage of total lending held at 37% which seems to be its natural level. Pressure on fixed rate levels came within the month of March as cost of funds for the Banks in Spain rose so we may see fixed rates moving up shortly.

Spanish Banks have a net inflow of lending for the month.

Net loan inflows


Spanish Banks will have been please to see an increase in numbers of loans being added to the book rather than a month of net outflows and whilst the increase was small never the less it was an increase.

Read the full article:- Good news for Spanish home loans

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