Spanish Mortgages July figures

 Loans in Spain

Spanish mortgages for July were a mixed bag of results.

Spanish Banks hopeful for full year figures

Spanish Banks are looking to see mortgage levels increase and at the moment whilst this is happening to a degree the movement is slow.

Lockdown travel restrictions due to relax

It is hoped as the lockdown restrictions on travel cease for the summer months more non resident mortgage applicants are encouraged to come and buy property.

Mortgage applicants are prepared

Many applicants for a Mortgage in Spain have already put in place a fiscal approval in anticipation of being able to visit Spain.

End of year should see some increase in the Spanish housing market and loan applications.

Read the full article:-Spanish loan data July

Purchase taxes Spain

 Andalucia tax break due to finish

At the beginning of 2021 Andalucia reduced purchase tax to kick start the housing market and mortgage activity for Spanish Banks.

What tax breaks were there

Reducing the flat rate from 8% to 7% and taking away the sliding scale of increases.

Is the tax breaks finishing end of 2021

It has not yet been confirmed but this tax break will most likely finish in December. No announcement has been made as yet to any extension to the policy.

Spanish Mortgage applicants will run out of time

For those buyers taking a mortgage to buy time is now running out to organise the documents for the Spanish mortgage application and be ready to complete in time.

Read the full article :-Purchase tax breaks due to finish in Spain

Regulated Mortgage brokers Spain

 Benefits of using a regulated loan broker in Spain

Since July 2019 only regulated mortgage brokers in Spain have been able to shop around and make an application for a Spanish Mortgage with a range of Spanish lenders.

All other intermedaries may only direct a client to a set bank and cannot intervene in the application process.

Spanish Mortgages

As Spanish Banks rarely have set products a broker who can negotiate with a range of lenders and negotiate bets terms and conditions possible is a must.

As a direct client you may not be aware fo how far you can push a lender on terms and conditions.

Don't pay up front fees

A good broker will only charge on delivery of a mortgage approval. There is no need to pay fees up front.

Read the full article:-Non resident mortgages in Spain use a regulated broker

Loans in Spain September 2021

 New Spanish Mortgages 

New loans in Spain saw a big increase in September over both same month last year and August this year.

Over last year the number of new Mortgages in Spain increased by 57.78%.

Spanish Banks see increase in mortgage applications

Spanish lenders have seen a marked increase in mortgage applications for the residential housing sector.

Commercial and development lending remains under pressure.

Interest rates low and stable

Interest rates are low and stable. Average home loan rate over a 25 year term was 2.47%. Variable rates were 2.19% with fixed rates 2.65%. Over 70% of all new lending was lent for the purpose of buying a home.

Read the full article :- September 2021 mortgage data Spain

May 2021 Home loan levels Spain

 Mays Spanish Mortgage activity

In the month of May mortgages in Spain saw a big increase in activity in comparison to same month of 2020. Unsurprisingly given last year Spain remained in a hard lockdown.

Over May the number of new loans was up as well but this would be a normal with May normally outperforming April.

Interest rates in Spain

Average interest rates went down in the month possibly due to a higher level of variable rate contracts being signed by those going through the mortgage application process.

Fixed rate products remain however competitive in the longer term so whether this trend continues remains to be seen.

Regional variations

Canary Islands and Balearics Spanish Mortgage levels were out of cinque with the rest of Spain maybe due to their much heavier reliance on non resident Spanish lending

Read the full article:- May 2021 Spanish loan activity

Mortgages in Spain April 2021

 INE releases Mortgage data in Spain

Data released by the INE show that Mortgages in Spain reduced in number over March but increased significantly on same month of last year.

Home loans in Spain 

Lending for buying a house remains at high levels of total credit granted. 

Interest rates are very stable with little change to average granted rates over last few months. 

April 2021 figures may be skewed by an early Easter

Aprils figures could have been affected by an early Easter Break but travel restrictions are playing a part.

Travel restrictions have an impact on mortgage completions

Many UK buyers even those with properties found have been unable to complete.

For the first time in many months the Spanish Banks saw a net outflow to their mortgage books.

Read the full article:- Loans in Spain April 2021

March Mortgages in Spain

 Loans in Spain see uplift

Spanish mortgage levels improved in Spain during the month of March.

With Spain opening up and more activity from visitors the summer months will hopefully see continued growth in loan numbers. Mortgages in Spain are benefiting from this.

Andalucia reduces purchase taxes

One region Andalucia has dropped purchase tax levels for the rest of the year to try and kick start the house buying market. This should feed through to increased lending.

Trips to Spain can now be booked

May potential borrowers can for the first time in months now consider booking a trip to Spain to look at properties.

Many buyers have pre-approved loans

Of those many are already pre-approved for loans having made applications earlier in the year.

Spanish Banks are keen to lend so activity levels rather than concerns over risk are what have held the market back the most.

Read the full article :- Spanish Mortgage market rebounds in March

Mortgages in Spain. improve over January

Mortgages in Spain upturn month on month

 Whilst down agains the same month of 2020. This being prior to impact of COVID, Spanish loans were up against the previous month of this year.

Average loan sizes were significantly down making capital lent only up by a margin, but last years loan sizes were skewed by abnormal reporting.

Regional variations

Regionally the figures showed a similar pattern across the whole of the Spain but of the main tourist areas only the Canaries saw a dip on Mortgage in Spain numbers over January reported figures.

Andalucia drop property tax levels

Andalucia region announced a cut in property tax levels dropping from 8% to 7% for the first 400k. This will have been done to stimulate activity and other regions may follow suit.

Interest rates stable

Interest rates are low and stable and for the first month in a few fixed rate loan contracts made up 55% of all Spanish Mortgage completions. Spanish Banks remain competitive against each other.

Read the full article:- February 2021 Spanish loan completions

January 2021 Spanish Mortgage data

 Mortgages in Spain see downturn in January

New Spanish mortgages saw downturn in January due to to the current situation.

Inability to travel to look at property and concerns over economic impact both had a part to play.

At the upper end of the Market activity seems to be holding up but for the more average priced homes and average mortgage sizes the market is dampened.

Market conditions

Interest rates remain historically low and desire for Spanish Lenders to lend remains high all be it with some caution about risk.

Mortgage applications in process remain at reasonably good levels but the time from application to completion is now very much unknown.

The opening up of the Country during the Summer months and ability for people to travel and feel more comfortable about their personal finances will have a big impact on how the rest of the year pans out.

Read the full article:-Mortgages in Spain Jan 2021

Re-mortgages in Spain

New lender in Spain starts to focus on re-mortgage market

 After one lender in 2020 started to put some focus on the Spanish re-mortgage market another Spanish Bank has followed suit.

Whilst still in test stages to both understand the level of requirement and to install a process that makes initial enquiry fast and streamlined if successful its will be rolled out.

Streamlined process 

The key difference with this new project is that the lender will without requiring a full mortgage in Spain application is made provide details of what they can offer. This will allow potential re-mortgagees to assess the cost effectiveness of considering a move.

Because many lenders in the past added compulsory products to taking a loan the removal of unnecessary linked products may well be on its own a good reason to move for one Bank to another.

Read the full article:-Re-mortgage in Spain

Mortgages in Spain full year 2020

Spanish Mortgage levels 2020

 The full year levels of new Mortgages in Spain dropped considerably from 2019 but due to a big increase in average loan sizes the Capital lent held up well.

Spanish Bank earnings should hold up

Spanish Banks gained benefit from lower redemption levels and added to their mortgage books during the year which will in turn help earnings.

Interest rates remain low

Interest rates remain low and stable for home loans and unlikely to see much movement throughout 2021

Average rates for a 25 year term are 2.47%.

Underwriting challenges for 2021

Underwriting for Spanish Lenders risk teams has become a challenge in how they assess furloughed or supported salaries along with any government help for self employed.

When considering buying it is therefore important to make go through the mortgage application process and get an approval before committing to a property.

Read the full article:-Home loan levels in Spain for 2020

November Spanish loan completion

New mortgages in Spain

 Data issued at back end of January showed that Novembers loan in completions in Spain were up over October but down against the same month of last year.

Due to a much higher average loan size in 2020 the overall level of capital lent has held up quite well over 2019. Spanish Banks have seen a net inflow of lending to their loan books despite the challenges being faced.

Low interest rates look to remain

Interest rates are low and stable encouraging borrowers to consider variable rates rather than long term fixes.

COVID lockdowns and travel restrictions will continue to put pressure on numbers December and first few months of 2021.

Most new credit for residential purchases

Level of all borrowing in Spain related to house purchase is high at 70.3% of all lending in comparison to the more normal 60% of all new credit.

Read the full article:-Monthly loan activity Spain

Can I arrange a Spanish Mortgage

Financing a Spanish Holiday home

 With everything that is going on at present many people are delaying the decision to buy a holiday home in Spain due to travel restrictions and financial uncertainty. Are Mortgages in Spain being offered at present.

All nationalities considered

for those who are part of the EU and not affected by Brexit and even for British clients who are there remains however a desire to buy a home abroad when COVID restrictions are lifted. Whilst it may not be possible to select a home at present it is possible to prepare for when that is possible by understanding what lending facilities are available to you and what sort of budget you may be looking at.

With many Dutch, Scandinavian, German, US and British non residents of Spain just postponing rather than cancelling a decision to buy and possibly having time on their hands Spanish Banks are still pre-approving mortgage applications ready for when the market moves.

Good time to do finance homework

Now is a good time to do your homework and appoint a reputable and regulated mortgage adviser to negotiate financing in Spain on your behalf. 

Types of property loans in Spain

Buying choices are changing away form apartments to country homes, more individual properties or the purchase of land and self build constructions. Find out what you need to know now about Mortgage in Spain options for finance and any limitations there may be.

Read the full article : - Time to arrange a Spanish Mortgage 

October Spanish Mortgages bounce back a little

October new loans in Spain

 Whilst the year looks to be fairly awful due to Brexit and COVID Spanish mortgages saw some uplift on September figures.

October 2019 was a very good month due to a number of completions delayed for new regulation so whilst down on 2019 the 2020 figures are not as bad as at first glance.

Spanish Banks increase mortgage book capital

Spanish Banks are seeing net inflows to their mortgage books due to much lower redemptions than normal despite the lower annual number of completions.

Average loan sizes are higher than last year which is helping overall capital lent.

Interest rates 

Interest rates remain very low and this would appear to now be the case for the foreseeable future.

Lenders in Spain continue at present to lend although for UK non resident applicants the process has become more difficult.

Read the full article :- October 2020 house loan data in Spain