Spanish Mortgage News

IMS - International Mortgage SolutionsData issued recently confirms the situation on lending in Spain continues to be depressed.

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

2 thoughts on “Spanish Mortgage News

  1. It is clear that people in Spain are reluctant to borrow funds from banks because of increased interest rates. However, the data provided here only dates up to February of 2012. Since we are already in the second quarter of 2012, a more up-to-date analysis of the first quarter of the year should be provided so as to make an accurate assessment of the current financial situation in Spain.

    1. Hi Bethany,
      It’s actually the other way around. It’s the banks that are reluctant to lend, there is plenty of demand but the banks have been so badly hit by bad loans they’re keeping their purse strings tight. They will lend against one of their stock properties but you are unlikely to get a loan on a property you find yourself.

      A full detailed analysis of the first quarter is not something that just appears on the first day of Q2. It takes time to prepare, check, double check and check again. If you click on Mortgages on the menu you will find results for Jan and Feb. March will be published once prepared along with a Q1 overview IF it makes interesting reading.

      This blog is a news source and is not here to provide “an accurate assessment of the current financial situation in Spain.” Try Standard & Poor or Fitch Ratings for that.

      However, if I may, the current financial situation in Spain is as follows: Cuts, cuts and more cuts. Tax increases, reduced services, record unemployment, record public debt, record fuel prices, no sensible solution. But it’s sunny!

      Thanks for reading and taking the time to comment.

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