Spanish mortgage completions for September 2013

Monthly mortgage statsitics for Spain

Issued this morning by the INE in Spain are the monthly figures for mortgage completions in Spain.

What is the current trend

For another consecutive month the trend for mortgage completions relating to residential property continues to show major declines both in terms of month to month in 2013 and on an inter-month and inter-annual basis.

Only the Canary Islands are showing any year on year increase to both numbers of mortgages completed and capital lent. All other regions of Spain are showing sharp decreases.

Overall the numbers of mortgages completed are down a third on same time last year.

Interest rates 

Average interest rates dropped slightly in September to August due mainly to a decrease in the Euribor. Spanish Banks continue to grant over 90% of loans on a variable basis with less than 10% of of loans granted or completed on a fixed rate basis.

Redemptions

For another consecutive month numbers of mortgages redeemed were higher than new loans added. This is due to three key factors, lack of demand, tight criterias and high pricing of Spanish loans.

Read the full article: Spanish loans for dwellings