August loan data Spain
August saw in most regions a fall back on average loan sizes and numbers of new loans in Spain.
Whilst in recent years August has performed above July up until a couple of years ago it was normal for August figures to be lower.
New lending is higher than redemptions
As well as new loans decreasing their were less cancellations in the month so the Spanish Banks actually saw a net inflow of new credit within the Month.
Interest rates set to climb
Interest rates continue to creep up although the Euribor is still in negative territory.
Overall we expect rates from the lenders to change in November as they redress the profit margin pressures from the final desicion on AJD tax.
Royal Decree on AJD tax
Whilst the Supreme Court by a narrow amount voted to revert the tax payment back to the borrower the following day the Prime minster used emergency powers to make a Royal Decree and overturning the Courts finding yet again.
From now on mortgage deed tax as a mortgage cost in Spain will be picked up by the Banks this has been enforced by a Royal Decree but will not be retrospective. It is difficult to see who wins here as rates will go up despite a plea from Sanchez for the Banks not to do this.
Read the full article :- August home loan figures Spain
