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
