Mortgages in Spain. improve over January

Mortgages in Spain upturn month on month

 Whilst down agains the same month of 2020. This being prior to impact of COVID, Spanish loans were up against the previous month of this year.

Average loan sizes were significantly down making capital lent only up by a margin, but last years loan sizes were skewed by abnormal reporting.

Regional variations

Regionally the figures showed a similar pattern across the whole of the Spain but of the main tourist areas only the Canaries saw a dip on Mortgage in Spain numbers over January reported figures.

Andalucia drop property tax levels

Andalucia region announced a cut in property tax levels dropping from 8% to 7% for the first 400k. This will have been done to stimulate activity and other regions may follow suit.

Interest rates stable

Interest rates are low and stable and for the first month in a few fixed rate loan contracts made up 55% of all Spanish Mortgage completions. Spanish Banks remain competitive against each other.

Read the full article:- February 2021 Spanish loan completions

January 2021 Spanish Mortgage data

 Mortgages in Spain see downturn in January

New Spanish mortgages saw downturn in January due to to the current situation.

Inability to travel to look at property and concerns over economic impact both had a part to play.

At the upper end of the Market activity seems to be holding up but for the more average priced homes and average mortgage sizes the market is dampened.

Market conditions

Interest rates remain historically low and desire for Spanish Lenders to lend remains high all be it with some caution about risk.

Mortgage applications in process remain at reasonably good levels but the time from application to completion is now very much unknown.

The opening up of the Country during the Summer months and ability for people to travel and feel more comfortable about their personal finances will have a big impact on how the rest of the year pans out.

Read the full article:-Mortgages in Spain Jan 2021

Re-mortgages in Spain

New lender in Spain starts to focus on re-mortgage market

 After one lender in 2020 started to put some focus on the Spanish re-mortgage market another Spanish Bank has followed suit.

Whilst still in test stages to both understand the level of requirement and to install a process that makes initial enquiry fast and streamlined if successful its will be rolled out.

Streamlined process 

The key difference with this new project is that the lender will without requiring a full mortgage in Spain application is made provide details of what they can offer. This will allow potential re-mortgagees to assess the cost effectiveness of considering a move.

Because many lenders in the past added compulsory products to taking a loan the removal of unnecessary linked products may well be on its own a good reason to move for one Bank to another.

Read the full article:-Re-mortgage in Spain

Mortgages in Spain full year 2020

Spanish Mortgage levels 2020

 The full year levels of new Mortgages in Spain dropped considerably from 2019 but due to a big increase in average loan sizes the Capital lent held up well.

Spanish Bank earnings should hold up

Spanish Banks gained benefit from lower redemption levels and added to their mortgage books during the year which will in turn help earnings.

Interest rates remain low

Interest rates remain low and stable for home loans and unlikely to see much movement throughout 2021

Average rates for a 25 year term are 2.47%.

Underwriting challenges for 2021

Underwriting for Spanish Lenders risk teams has become a challenge in how they assess furloughed or supported salaries along with any government help for self employed.

When considering buying it is therefore important to make go through the mortgage application process and get an approval before committing to a property.

Read the full article:-Home loan levels in Spain for 2020

November Spanish loan completion

New mortgages in Spain

 Data issued at back end of January showed that Novembers loan in completions in Spain were up over October but down against the same month of last year.

Due to a much higher average loan size in 2020 the overall level of capital lent has held up quite well over 2019. Spanish Banks have seen a net inflow of lending to their loan books despite the challenges being faced.

Low interest rates look to remain

Interest rates are low and stable encouraging borrowers to consider variable rates rather than long term fixes.

COVID lockdowns and travel restrictions will continue to put pressure on numbers December and first few months of 2021.

Most new credit for residential purchases

Level of all borrowing in Spain related to house purchase is high at 70.3% of all lending in comparison to the more normal 60% of all new credit.

Read the full article:-Monthly loan activity Spain

Can I arrange a Spanish Mortgage

Financing a Spanish Holiday home

 With everything that is going on at present many people are delaying the decision to buy a holiday home in Spain due to travel restrictions and financial uncertainty. Are Mortgages in Spain being offered at present.

All nationalities considered

for those who are part of the EU and not affected by Brexit and even for British clients who are there remains however a desire to buy a home abroad when COVID restrictions are lifted. Whilst it may not be possible to select a home at present it is possible to prepare for when that is possible by understanding what lending facilities are available to you and what sort of budget you may be looking at.

With many Dutch, Scandinavian, German, US and British non residents of Spain just postponing rather than cancelling a decision to buy and possibly having time on their hands Spanish Banks are still pre-approving mortgage applications ready for when the market moves.

Good time to do finance homework

Now is a good time to do your homework and appoint a reputable and regulated mortgage adviser to negotiate financing in Spain on your behalf. 

Types of property loans in Spain

Buying choices are changing away form apartments to country homes, more individual properties or the purchase of land and self build constructions. Find out what you need to know now about Mortgage in Spain options for finance and any limitations there may be.

Read the full article : - Time to arrange a Spanish Mortgage 

October Spanish Mortgages bounce back a little

October new loans in Spain

 Whilst the year looks to be fairly awful due to Brexit and COVID Spanish mortgages saw some uplift on September figures.

October 2019 was a very good month due to a number of completions delayed for new regulation so whilst down on 2019 the 2020 figures are not as bad as at first glance.

Spanish Banks increase mortgage book capital

Spanish Banks are seeing net inflows to their mortgage books due to much lower redemptions than normal despite the lower annual number of completions.

Average loan sizes are higher than last year which is helping overall capital lent.

Interest rates 

Interest rates remain very low and this would appear to now be the case for the foreseeable future.

Lenders in Spain continue at present to lend although for UK non resident applicants the process has become more difficult.

Read the full article :- October 2020 house loan data in Spain