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

Scandinavian borrowers in Spain increase

 March 2022 loan data Spain

March saw an increase in completed mortgages for Spain.

Whilst the last couple of months have seen general decreased activity levels for borrowing some nationalities are on the increase.

Spanish non resident loans

Finnish, Swedish and US mortgage applicants are rising in particular.

Non residents from UK looking for a Spanish Mortgage remain very low. This may be due to poor economic outlook in Britain. Also a general nervousness about food shortages, dropping house prices and inflation.

Interest rates

Interest rate averages remain relatively stable but many Spanish Banks are talking about rate rises.

12 month Euribor is due out in next couple of days and may increase again.

Over 70% of all new credit flowing into the Spanish market are for home loans. Construction and business loans remain depressed.

Read the full article:- Mortgages in Spain activity for month of March

12 month Euribor for Mortgages in Spain rises

May 12 month Euribor

 Mays 12 month Euribor published by Bank of Spain for reviews and completions rose to 0.13%. For a number of years now the Euribor has been in negative territory.

The move suggests the ECB base rate will increase in next few weeks.

Interest rates in Spain

Either way cost of funds for Spanish Banks will rise. The knock on affect being rate increases.

Currently interest rates for new Spanish Mortgages remains around 2.65% for new loans. Fixed rates make up the majority of all new loan contracts.

Level of capital lent for homes increases

In the month numbers of loans in Spain for February rose marginally against the previous month and are significantly up on same month of last year and annually to date.

In an indication prices of property have risen capital lent has a higher percentage increase than numbers in most regions.

Read the full article:-Euribor increases for Mortgages in Spain

January 2022 Spanish Mortgage news

 Mortgages in Spain first month 2022

Home loans in Spain for January showed an increase over December 2021 and for the same month of last year. However the percentage increase was not as high as would be normal.

Fixed rate product types

As a product type fixed rates have now taken over variable rate lending contracts. In a complete turnaround to even 5 years ago fixed rates now make up more than 70% of all new loans granted.

With the Euribor rising and a likelihood of an ECB rate change at some point both Spanish Banks and borrowers are looking for the stability a fixed rate provides.

Slow down in new enquiries

With many challenges, Ukraine war, Covid and impact of Brexit potential borrowers undertaking the mortgage application process in Spain is very slow so far this year. 

Read the full article:- Mortgages in Spain January 2022

Lending in Spain full year 2021

 December 2021 Mortgages in Spain

Decembers end of year figures showed their was significant growth year on year from 2020.

Whilst this is not of a surprise given the COVID situation the year before the numbers also show healthy growth in last 5 years. In comparison to 2017 the average loan size has grown from 117.7k to 137.9k and the number of yearly Mortgages in Spain from 312k to 417k.

Fixed rates dominant the home loan market in Spain

Fixed rates now dominant the market with some Spanish Banks only offering variable rates by exception.

This is a big turnaround for the market 5 years ago when fixed rates made up a very small percentage of all home loans in Spain.

Interest rates stable for the month

Interest rate averages for fixed rates are 2.80% over a 24 year term so look to be good long term value for borrowers.

The Euribor whilst still in negative territory rose the most in February for many months.

Read the full article:- Spanish lending grew in 2021

November 2022 Mortgages in Spain

Mortgages in Spain remain static

 In November mortgages in Spain levels remained very static against October.

Against last year they were 24% so year to date the increase 23.7%.

Average loan sizes were up slightly and Capital lent same as previous month.

Interest rates increase slightly

Interest rates have risen a little since same period of last year but remain very good value in the area of long term fixes.

Long term fixes for non residents provide stability and hedge against foreign exchange decreases.

One lender reduces arrangement fees to 0%

Sabadell Bank has introduced a 0% arrangement fee in an attempt to increase their market share of home loans in Spain.

Spanish Banks saw a net outflow of lending for second month running with more redemptions than new loans. Lenders will be looking for this to reverse again after many months off adding to their loan books.

Read the full article:-Home loans Spain remain static