September Mortgages in Spain

Interest rates in Spain

 Interest rates for Mortgages in Spain appeared to be static in September. This is a little strange given The Euribor had increased to over 1% for that month.

Either there is inaccurate figures or the average rate relates to offers made in previous months where the Spanish Banks chose to hold rate.

The average interest rate fell against August.

12 month Euribor up again

Current 12 month Euribor for December is now 2.828% so we may see rates topping 3% before the end of the year.

Spanish lenders have been steadily increasing their fixed rate best buy loan products. This is also true of the Mixed/ Fixed product types.

September loan activity high

In September numbers of new loans remained high although and redemptions remained low. This meant Spanish lenders saw a net inflow of balances to their loan books.

Read the full article:-Spanish Mortgage completions

August 2022 Mortgages in Spain

August data

 Mortgages in Spain remained stable in August. This was both in terms of interest rates and numbers.

Because the information relates to registered loans in Spain, this will reflect completions for June and July.

Future months

Over the next few months we will see rates rise on completed Home loans and possibly numbers fall.

Spanish Banks remain cautious in current environment. Loans for construction are already under pressure.

Lenders have also started to adjust their mortgage product type offerings. Fixed rates have increased with all lenders.

Spanish Mortgage product offerings

Fixed rate mortgages in Spain for non residents going through the application process may no longer provide the best alternative.

Mixed fixed rate loans whereby they are fixed for a period and then revert to a favourable Variable rate margin may provide the most flexibility moving forward.  

Fixing in periods of rate increases and taking advantage as of rate decreases a few years down the line.

Read the full article:-Spanish mortgage market for August 2022

Average Spanish Mortgage size drop

July Spanish lending data

 In July the average size of a Mortgage in Spain dropped.

Against June this was also true of number of new loans and capital lent.

Over July of last year all data remained as an increase as does year to date.

House sales in Spain slow

However house sales have slowed a little and there are some signs the lending marketing is slowing down. Madrid was most heavily hit by this downturn.

Interest rates

Interest rate increases have still not flowed through to the average rate achieved for recent completions. Next month we will probably start to see the impact.

Spanish Banks change affordability criteria

Spanish lenders have started to tighten criteria. Using new affordability ratios with built in rate increases.

We remain in an environment flux. 

The 12 month Euribor will increase in October from the 1.249% of September as the base rate is now 1.25%.

Read the full article:-Spanish Mortgage sizes drop

June 2022 Spanish Mortgage completions

June completions for mortgages in Spain

The month of June showed a small slowdown in year on year growth.

Numbers of new mortgages in Spain was below Mays which is unusual. However over June of the previous year and year to date the numbers remain up.

Spanish Banks see positive increase in loan books

Spanish lenders saw a net inflow to their mortgage books in the Month.

Interest rates in Spain

Interest rates remained stable at an average of 2.47% over a 24 year term. However this is likely to increase for July completions. Fixed rates made up the key product type. Over 70% of all new loans in Spain completed on a fixed rate basis.

Mortgages in Spain for non residents

Non resident applications remain subdued due to economic issues and Brexit fallout. This is unlikely to change as the year progresses.

Read the full article:-Mortgage completions in Spain

Spanish loan statistics for May 2022

 Data on Mortgages in Spain for May

Mays Spanish mortgage information from the INE showed an increase inn May. Both numbers of and average loan sizes increased in the month over April. 

This produced a net inflow of business for the Spanish Banks.

Anticipated pressures for loans in Spain

Whilst Mays figures were good pressures are now coming into play. The recent increase in the ECB base rate has meant loan rates are starting to increase.

Spanish lenders are nervous of both inflationary and interest rate impacts.

This means that we have started to see fixed rates increase or be pulled by lenders and tightening of criteria.

Interest rates Spain

The 12 month Euribor reached 0.85% in July and will probably increase to 1% or more in August. 

June and Julys loan figures may start to reflect the market conditions and for sure average interest rates will increase.

UK buyers and borrowers in Spain are already thin on the ground and the economic situation in Europe could see other nationalities reduce in numbers.

Read the full article:-Spanish lending data May 2022

Spanish Mortgages decline in April

 Spanish mortgage levels dropped in April over March.

Whilst still up year on year there may be a slowdown in growth of Mortgages in Spain. This could be due to economic issues affecting Europe.

Also UK buyers are thin on the ground due to changes in visa requirements and reduced amount of time you can stay in Spain.

Spanish interest rates

Interest rates in Spain are staring to rise already some lenders have increased fixed rate levels. More are expected to follow.

Fixed rate availability

More Spanish Banks have removed the facility for non euro earners to take up fixed rates. Alos others have reduced the currencies that they will offer fixed rates with.

This is due to the regulation change of 2019. Whereby lenders are obliged if exchange rates fluctuate by more than 20% to move loan to currency of earning.

Pressures affecting the market

This along with cost of living concerns, interest rate rises and general uncertainty will impact the mortgage market in Spain as the year progresses.

Read the full article:- Spanish mortgage figures for April

Scandinavian borrowers in Spain increase

 March 2022 loan data Spain

March saw an increase in completed mortgages for Spain.

Whilst the last couple of months have seen general decreased activity levels for borrowing some nationalities are on the increase.

Spanish non resident loans

Finnish, Swedish and US mortgage applicants are rising in particular.

Non residents from UK looking for a Spanish Mortgage remain very low. This may be due to poor economic outlook in Britain. Also a general nervousness about food shortages, dropping house prices and inflation.

Interest rates

Interest rate averages remain relatively stable but many Spanish Banks are talking about rate rises.

12 month Euribor is due out in next couple of days and may increase again.

Over 70% of all new credit flowing into the Spanish market are for home loans. Construction and business loans remain depressed.

Read the full article:- Mortgages in Spain activity for month of March

12 month Euribor for Mortgages in Spain rises

May 12 month Euribor

 Mays 12 month Euribor published by Bank of Spain for reviews and completions rose to 0.13%. For a number of years now the Euribor has been in negative territory.

The move suggests the ECB base rate will increase in next few weeks.

Interest rates in Spain

Either way cost of funds for Spanish Banks will rise. The knock on affect being rate increases.

Currently interest rates for new Spanish Mortgages remains around 2.65% for new loans. Fixed rates make up the majority of all new loan contracts.

Level of capital lent for homes increases

In the month numbers of loans in Spain for February rose marginally against the previous month and are significantly up on same month of last year and annually to date.

In an indication prices of property have risen capital lent has a higher percentage increase than numbers in most regions.

Read the full article:-Euribor increases for Mortgages in Spain

January 2022 Spanish Mortgage news

 Mortgages in Spain first month 2022

Home loans in Spain for January showed an increase over December 2021 and for the same month of last year. However the percentage increase was not as high as would be normal.

Fixed rate product types

As a product type fixed rates have now taken over variable rate lending contracts. In a complete turnaround to even 5 years ago fixed rates now make up more than 70% of all new loans granted.

With the Euribor rising and a likelihood of an ECB rate change at some point both Spanish Banks and borrowers are looking for the stability a fixed rate provides.

Slow down in new enquiries

With many challenges, Ukraine war, Covid and impact of Brexit potential borrowers undertaking the mortgage application process in Spain is very slow so far this year. 

Read the full article:- Mortgages in Spain January 2022

Lending in Spain full year 2021

 December 2021 Mortgages in Spain

Decembers end of year figures showed their was significant growth year on year from 2020.

Whilst this is not of a surprise given the COVID situation the year before the numbers also show healthy growth in last 5 years. In comparison to 2017 the average loan size has grown from 117.7k to 137.9k and the number of yearly Mortgages in Spain from 312k to 417k.

Fixed rates dominant the home loan market in Spain

Fixed rates now dominant the market with some Spanish Banks only offering variable rates by exception.

This is a big turnaround for the market 5 years ago when fixed rates made up a very small percentage of all home loans in Spain.

Interest rates stable for the month

Interest rate averages for fixed rates are 2.80% over a 24 year term so look to be good long term value for borrowers.

The Euribor whilst still in negative territory rose the most in February for many months.

Read the full article:- Spanish lending grew in 2021

November 2022 Mortgages in Spain

Mortgages in Spain remain static

 In November mortgages in Spain levels remained very static against October.

Against last year they were 24% so year to date the increase 23.7%.

Average loan sizes were up slightly and Capital lent same as previous month.

Interest rates increase slightly

Interest rates have risen a little since same period of last year but remain very good value in the area of long term fixes.

Long term fixes for non residents provide stability and hedge against foreign exchange decreases.

One lender reduces arrangement fees to 0%

Sabadell Bank has introduced a 0% arrangement fee in an attempt to increase their market share of home loans in Spain.

Spanish Banks saw a net outflow of lending for second month running with more redemptions than new loans. Lenders will be looking for this to reverse again after many months off adding to their loan books.

Read the full article:-Home loans Spain remain static

Spanish fixed rate product type growth

Number of loans drop in October

 October Mortgages in Spain decreased on September but remained on an upward trend over same month of last year and year to date accumulated.

Fixed rates are now the favoured product type

Fixed rate product type growth continued in the month with over 70% of all new loans in Spain being contracted on that basis.

Interest rates rise slightly

Average interest rates are slowly creeping up each month partly driven by a higher average rate for fixed rates over variable rates. As the percentage of fixed rate contracts grows this has an impact on total average rates. In terms of general rates the 12 month Euribor remains in negative territory.

Home improvement loans increase 

More home owners also appear to be considering borrowing to improve their existing home rather than move. Spanish Banks should look to this market in a more flexible manner in 2022.

Read the full article:-Spanish fixed rate mortgages prominent in October