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

Spanish fixed rate product type growth

Number of loans drop in October

 October Mortgages in Spain decreased on September but remained on an upward trend over same month of last year and year to date accumulated.

Fixed rates are now the favoured product type

Fixed rate product type growth continued in the month with over 70% of all new loans in Spain being contracted on that basis.

Interest rates rise slightly

Average interest rates are slowly creeping up each month partly driven by a higher average rate for fixed rates over variable rates. As the percentage of fixed rate contracts grows this has an impact on total average rates. In terms of general rates the 12 month Euribor remains in negative territory.

Home improvement loans increase 

More home owners also appear to be considering borrowing to improve their existing home rather than move. Spanish Banks should look to this market in a more flexible manner in 2022.

Read the full article:-Spanish fixed rate mortgages prominent in October

Spanish Mortgages July figures

 Loans in Spain

Spanish mortgages for July were a mixed bag of results.

Spanish Banks hopeful for full year figures

Spanish Banks are looking to see mortgage levels increase and at the moment whilst this is happening to a degree the movement is slow.

Lockdown travel restrictions due to relax

It is hoped as the lockdown restrictions on travel cease for the summer months more non resident mortgage applicants are encouraged to come and buy property.

Mortgage applicants are prepared

Many applicants for a Mortgage in Spain have already put in place a fiscal approval in anticipation of being able to visit Spain.

End of year should see some increase in the Spanish housing market and loan applications.

Read the full article:-Spanish loan data July

Purchase taxes Spain

 Andalucia tax break due to finish

At the beginning of 2021 Andalucia reduced purchase tax to kick start the housing market and mortgage activity for Spanish Banks.

What tax breaks were there

Reducing the flat rate from 8% to 7% and taking away the sliding scale of increases.

Is the tax breaks finishing end of 2021

It has not yet been confirmed but this tax break will most likely finish in December. No announcement has been made as yet to any extension to the policy.

Spanish Mortgage applicants will run out of time

For those buyers taking a mortgage to buy time is now running out to organise the documents for the Spanish mortgage application and be ready to complete in time.

Read the full article :-Purchase tax breaks due to finish in Spain

Regulated Mortgage brokers Spain

 Benefits of using a regulated loan broker in Spain

Since July 2019 only regulated mortgage brokers in Spain have been able to shop around and make an application for a Spanish Mortgage with a range of Spanish lenders.

All other intermedaries may only direct a client to a set bank and cannot intervene in the application process.

Spanish Mortgages

As Spanish Banks rarely have set products a broker who can negotiate with a range of lenders and negotiate bets terms and conditions possible is a must.

As a direct client you may not be aware fo how far you can push a lender on terms and conditions.

Don't pay up front fees

A good broker will only charge on delivery of a mortgage approval. There is no need to pay fees up front.

Read the full article:-Non resident mortgages in Spain use a regulated broker