October 31, 2012
Last week and again this week a tranche of data has been released in Spain.
Apart from the fact that the trade surplus is a positive most of it did not make happy reading.
Some of the issues like rising mortgage delinquencies are as a consequence not just of rising numbers but because for the last year the amount of money being lent has been less than the loans redeemed. In a shrinking mortgage book therefore the number of loans gone bad will rise as a percentage of the total book.
Lending has fallen away most heavily in the resident cities and large towns. Pockets like Andalucía still show reasonable numbers as lenders lend in these areas to non residents as well as residents.
Numbers of loans being granted for holiday home owners etc appear to be stabilized at last year levels and may well increase as banks become more rather than less active in lending against their own properties in effort to sell them.
The last few weeks there has been renewed activity in the area of mortgage enquiries relating to new builds. As the 4% IVA, which is a discount to the 10% it will revert to in January 2013 comes to a close, people are trying to select and complete before the 31st Dec deadline.
International Mortgage Solutions