Whilst Spanish Banks were the biggest up takers of the European Central Banks cheap bonds issued over the last few months this money was predominately used to buy sovereign debt rather than to ease the credit squeeze.
Mortgage lending in Feb 2012 was down 9.4% from the previous month and 47.1% down from the same time the previous year.
Interest rates were up by 17.3% at an average granted rate of 4.54%.
All Banks plan to contract their lending books this year as they struggle to meet new balance sheet and provisioning stipulations introduced by the government.
IMS an independent broker based in Spain says unlike the national data our completions for the year on year February 2011 versus 2012 are up 28%.
Average granted rates were just over 4%.
It is still possible to obtain rates from 3.29% at the lower end subject to loan to values levels and linked products taken.
Heather from IMS said “The Spanish Banks do remain cautious but with the right support, this does not always impact on lending volumes.”
International Mortgage Solutions