Spanish lending in October 2023

 Economy not impacting on Mortgages in Spain

Despite some of the economic pressures Mortgages in Spain remain stable.

Interest rates remain low

Interest rates have barely climbed even though the euribor has risen. This may be because Spanish Banks are taking lower margins.

Fixed rate products remain the chosen mortgage product type. Variable rates however came in at 2.10% suggesting margins above euribor as an average are between 0.50% to 0.75%.

Spanish Banks

Spanish Banks also saw a healthy inflow of loans. New mortgages constituted were well above those cancelled.

Madrid, Canary Islands and Balearics saw big increases in the month.

Mortgages in Spain for non residents remain under pressure. Mainly due to Brexit and regulations surrounding currency fluctuation.

Read the full article:-Spanish lending beginning of last quarter

September Mortgages in Spain

Interest rates in Spain

 Interest rates for Mortgages in Spain appeared to be static in September. This is a little strange given The Euribor had increased to over 1% for that month.

Either there is inaccurate figures or the average rate relates to offers made in previous months where the Spanish Banks chose to hold rate.

The average interest rate fell against August.

12 month Euribor up again

Current 12 month Euribor for December is now 2.828% so we may see rates topping 3% before the end of the year.

Spanish lenders have been steadily increasing their fixed rate best buy loan products. This is also true of the Mixed/ Fixed product types.

September loan activity high

In September numbers of new loans remained high although and redemptions remained low. This meant Spanish lenders saw a net inflow of balances to their loan books.

Read the full article:-Spanish Mortgage completions

August 2022 Mortgages in Spain

August data

 Mortgages in Spain remained stable in August. This was both in terms of interest rates and numbers.

Because the information relates to registered loans in Spain, this will reflect completions for June and July.

Future months

Over the next few months we will see rates rise on completed Home loans and possibly numbers fall.

Spanish Banks remain cautious in current environment. Loans for construction are already under pressure.

Lenders have also started to adjust their mortgage product type offerings. Fixed rates have increased with all lenders.

Spanish Mortgage product offerings

Fixed rate mortgages in Spain for non residents going through the application process may no longer provide the best alternative.

Mixed fixed rate loans whereby they are fixed for a period and then revert to a favourable Variable rate margin may provide the most flexibility moving forward.  

Fixing in periods of rate increases and taking advantage as of rate decreases a few years down the line.

Read the full article:-Spanish mortgage market for August 2022

Average Spanish Mortgage size drop

July Spanish lending data

 In July the average size of a Mortgage in Spain dropped.

Against June this was also true of number of new loans and capital lent.

Over July of last year all data remained as an increase as does year to date.

House sales in Spain slow

However house sales have slowed a little and there are some signs the lending marketing is slowing down. Madrid was most heavily hit by this downturn.

Interest rates

Interest rate increases have still not flowed through to the average rate achieved for recent completions. Next month we will probably start to see the impact.

Spanish Banks change affordability criteria

Spanish lenders have started to tighten criteria. Using new affordability ratios with built in rate increases.

We remain in an environment flux. 

The 12 month Euribor will increase in October from the 1.249% of September as the base rate is now 1.25%.

Read the full article:-Spanish Mortgage sizes drop

June 2022 Spanish Mortgage completions

June completions for mortgages in Spain

The month of June showed a small slowdown in year on year growth.

Numbers of new mortgages in Spain was below Mays which is unusual. However over June of the previous year and year to date the numbers remain up.

Spanish Banks see positive increase in loan books

Spanish lenders saw a net inflow to their mortgage books in the Month.

Interest rates in Spain

Interest rates remained stable at an average of 2.47% over a 24 year term. However this is likely to increase for July completions. Fixed rates made up the key product type. Over 70% of all new loans in Spain completed on a fixed rate basis.

Mortgages in Spain for non residents

Non resident applications remain subdued due to economic issues and Brexit fallout. This is unlikely to change as the year progresses.

Read the full article:-Mortgage completions in Spain

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