June figures show lax lustre loan levels
Data published by INE in Spain for June Spanish loan levels show the market is under pressure.
This for a variety of reasons. Concerns in Spain that economic growth is stalling, that global economy is under pressure, Brexit impact and new loan regulation are all playing their part.
Will things improve
It is unlikely July and August figures will show any improvement if only for fact a number of completions have been postponed and delayed due to the lenders in Spain not being ready to deal with regulation changes and unable to meet the new requirements for a few weeks.
Whether toward back end of year this will balance out or the continued uncertainty of buyers tightens the market further remains to be seen.
Interest rates remain stable
Interest rates continue to fall marginally over last year but new regulation may have an affect on access to fixed rates for a number of mortgage applicants as Banks in Spain adapt their portfolio to meet the new requirements.
Applicant criteria
At present UK nationals can still expect to get up to a maximum of 70% loan to value but if the UK crashes out of Europe without a deal it is anticipated this will drop to 60% and that debt to income ratios already adjusted by some lenders will tighten further.
Read the full article:- Spanish loan levels dip in June
