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