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

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