July 2023 home loans in Spain

 Home loans in Spain saw a dip in July

Whilst it is normal for July to be below June this is another consecutive month of decreases.

High interest rates are hitting the resident and non resident mortgage market in Spain.

Spanish Banks reduce average margins

Banks are negotiating on rates. Dropping average margins above Euribor to 1.5%. From 2%. Alos retaining reasonable rates on long term fixes.

Mixed rate product types in Spain

A couple of lenders are also offering mixed rate product types. Shorter term fixes for 3 to 5 years. Followed by variable. Giving borrowers in Spain opportunity to stabilises monthly payments today. Retaining opportunity to take advantage of rate drops in the next few years.

Spanish Banks saw another month with a net outflow of capital lent

Read the full article:- Spanish loan levels drop July 2023

Spanish Mortgage lending in June

 Lending in Spain decreased in the month June

Numbers of new loans were down 21.9% against same month of last year.Year to date the market has decreased significantly. This despite a good start to the year.

Interest rates and economic issues in Europe are having an impact

Spanish Banks are tightening credit. However lenders are more focussed on better rates and conditions for strong applicants.

Bank of Spain

The Bank of Spain last quarterly report indicated a sluggish housing market.

Euribor decreases

The Euribor decreased slightly in September but this is not yet a trend.

Read full article:-Mortgage lending tightens in Spain