Mortgage borrowing falls in April
June 20, 2012 2 Comments
Following falling property sales the number of new mortgages approved in April fell by 7.5% compared to the same month in 2011.
A total of 977.061 million euros of new mortgage loans were approved compared to 1.056.325 million euros in April of the previous year.
The Spanish Mortgage Association released the figures which confirm April as a slow month with property transfers also falling 5.7%.
The month closed with the total mortgage balance down on the previous month by 8.780 million euros, 20.000 million euros less than in February. The year-on-year balance dropped by 73.264 million euros, putting the total balance at 966.514 million euros which includes a figure of 176.058 million euros in securitised mortgage assets.
Banks and savings banks accounted for 887.416 million euros of the total while credit unions recorded 65.409 million euros representing a 4.95% fall for them. However, it wasn’t bad news for all with credit institutions accounting for 13.689 million euros representing a massive year-on-year growth of 35%.
The figures show with some clarity the continued slowdown of the country’s real-estate sector which has been suffering since the property bubble burst in 2007, when property prices were at their peak and property sales figures also hit record levels.
You can see the report here: Mortgage Credit Activity April 2012