Net mortgages added to books for first time in over 6 years
Spanish Banks have finally managed after years of net outflows to add more new loans to their overall books in September.
Data issued this month by the INE in Spain show that whilst it may constitute baby steps more new loans completed than those cancelled within the month.
Whilst it is too early to say this trend will continue it will be a relief to the Spanish Banks who must have been wondering if they could ever halt the shrinkage on their mortgage books. Whilst after the crisis began in 2007 the Banks had pulled back from lending in a effort to reduce their exposure to the housing market since 2012 most banks have had lending targets and their business models required that net outflows each month stopped.
Numbers of new loans
The number of new loans in September was above 23,000 and was a 20% increase over the same month of the previous year. The increase was slighlty below the increase between August and September of 2014 but never the less was good news as this is now the 8th consecutive month of monthly improvement.
Average loan sozes and capital lent were also higher month on month, interannualy and annualy.
Interest rates
The average interest rate for home loans was down 7.1% over last year but was slightly higher than the average rate being charged for all credit suggesting business loans and commercial lending remains very competative.
Euribor 12 month was the most used index and variable rate was signed on over 90% of all new contracts.
Regions
Madrid completed on the highest number of loans knocking Andalucia into second place. The Baelerics is the star of 2015 achieving a year on year increase of 74% to date with 3 reporting months still left in the year.
Read the full article : - Mortgage completions exceed cancellations in Spain
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