Mortgages in Spain August 2023

Spanish lending levels reduced

 Mortgages in Spain saw a further month of decreases. In terms of numbers of, also capital lent and average loan sizes.

Economic pressures are affecting the level of buyers of homes and lending requirements.

Interest rates 

Choosing the right product type for now and the longer term due to interest rate volatility has become more difficult. Non resident mortgages in Spain are available. Variable, fixed or mixed rate products are the option.

A full understanding of these before making a decision has become crucial for those going through the application process in Spain.

Spanish Banks

Spanish Banks have reduced margins above Euribor. However they are currently experiencing net outflows to their mortgage books.

Read the full article:- Downward trend for Spanish Mortgages

July 2023 home loans in Spain

 Home loans in Spain saw a dip in July

Whilst it is normal for July to be below June this is another consecutive month of decreases.

High interest rates are hitting the resident and non resident mortgage market in Spain.

Spanish Banks reduce average margins

Banks are negotiating on rates. Dropping average margins above Euribor to 1.5%. From 2%. Alos retaining reasonable rates on long term fixes.

Mixed rate product types in Spain

A couple of lenders are also offering mixed rate product types. Shorter term fixes for 3 to 5 years. Followed by variable. Giving borrowers in Spain opportunity to stabilises monthly payments today. Retaining opportunity to take advantage of rate drops in the next few years.

Spanish Banks saw another month with a net outflow of capital lent

Read the full article:- Spanish loan levels drop July 2023

Spanish Mortgage lending in June

 Lending in Spain decreased in the month June

Numbers of new loans were down 21.9% against same month of last year.Year to date the market has decreased significantly. This despite a good start to the year.

Interest rates and economic issues in Europe are having an impact

Spanish Banks are tightening credit. However lenders are more focussed on better rates and conditions for strong applicants.

Bank of Spain

The Bank of Spain last quarterly report indicated a sluggish housing market.

Euribor decreases

The Euribor decreased slightly in September but this is not yet a trend.

Read full article:-Mortgage lending tightens in Spain

Mortgage lenders in Spain

 Spanish Banks

Spanish Banks saw an upturn in mortgage business in May 2023.

Whilst above Aprils figures they are still a long way behind last years.

Fixed rates versus variable

Spanish mortgage borrowers may still find fixed rates the best option. Many new applicants are opting to contract the loan on fixed rate basis.

New Mortgage in Spain applications

On the non resident side the quality of new applicants is not good. This is at same time as Bank criterias tighten. 

Recent survey UK

A recent survey in UK showed home ownership abroad since Brexit has fallen significantly

Read the full article:-Spanish Mortgage Lenders 

Spanish lending April 2023

 Spanish lending figures in Spain

INE data showed yet again another month of reduced lending in Spain. Spanish mortgages remain under pressure.

Interest rates

High interest rates continue to subdue market. However fixed rates can still be gained for full term. With average rates for fixes at 4% for 20 years.

Spanish Banks

Spanish Banks are not seeing despite rate rises higher repossessions.

April 2023 Mortgage figures Spain

March 2023 lending dips in Spain

 Lending in Spain for March

March saw a big dip in completions for Spanish loans.

Interest rates are affecting the level of new loans

Published interest rates do not seem to match up with current reality. Average rates over a 25 year term are not realistic. Spanish Banks charge a margin above Euribor. The 12 month Euribor has been higher than the average rate for some months now.

Spanish Banks

Spanish lenders have started to see a net outflow. To their mortgage books. This has not happened for a few years now. 

Read the full article:- Interest rates in Spain affect lending levels March

Interest rates in Spain

 Spanish interest rates rise

Rates in Spain still appear to be a long way behind recent rises. 

In february 2023 they were reported at average 2.86%. This is some way behind current 12 month Euribor levels.

Fixed rates in Spain

Fixed rates still appear to be good value for money. Non Euro earners can still obtain fixed rates. Lenders offering this limited.

February Mortgages in Spain

Mortgages in Spain reduced in numbers for February. This is a reflection of the market challenges

Some good news for non resident borrowers in Spain

One lender who previously could not lend to US citizens has now removed this restriction

Read the full article:- Spanish Interest rates