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