Spanish mortgages drop for second month

Lending downturn in Spain

Spanish Loans registered at land registry showed a downturn on the previous month for the second month in a row in March.

January Spanish Mortgage levels was very high in comparison to the year before but the market expected this as house sales have increased.

Whilst annually the loan levels in terms of numbers and capital lent are above 2017 this is being eroded each month.

Will political uncertainty have an impact

It is however normal for March to be behind February although tis was to the case in 2017 when March showed a high increase over February activity.

With the uncertainty caused by the no confidence vote for Rajoy it may be that mortgage levels fall back further in the coming months.

Interest rates remain low

Interest rates continue to drop as an average and are very low.

The average fixed rate over 24 years was 3.11% in March and the average variable rate for a 24 year term 2.62.

Fixed rates as a product type have stabilised at around 37% of all new Spanish residential lending after a couple of years of taking a higher market share.

For the first month in a few the Spanish Banks saw a net outflow from their books

Read the full article:- Second month of drop in Mortgage levels in Spain