As buyer confidence increases in the Spanish property market, so too does the confidence of banks to lend, although they are still a way off the amounts loaned in 2011 which was followed by two years of decline. In 2014 we saw a slight increase in lending.
In 2015 the total number of mortgages approved for homes was 244,827, a massive increase of 19.8% over 2014. The total number of approved mortgages was 369,588. When looking at the types of properties being mortgaged there is an increase in numbers across the board:
- 18,566 Rustic Properties (4.7% increase)
- 351,022 Urban Properties (17.9% increase)
- 244,827 Dwellings (19.8% increase)
Following a few tumultuous years in the mortgage world it seems the banks have now normalised their reserves and are once again ready to lend although the average amount mortgaged has dropped slightly sitting at €129,214 (-0.8%).
In general, the total amount loaned throughout 2014 increased by 16.2% to a massive 47,756 million Euros.
As mentioned in a previous article, Spanish property sales are on the up and this is reflected in the number of new mortgages with the same regions topping the charts.
Andalucia saw the most new mortgage approvals in 2015 registering 45,971 of the total, an increase of 20.4%. Madrid and Cataluña followed close behind with 42,382 (19.6% increase) and 38,583 (25.9% increase), respectively.
In terms of percentage increase, the Balearic Islands topped the list with a massive 41.4% increase in mortgage approvals despite only 8,300 new loans.
The only autonomous region to record a drop was the tiny Spanish enclave of Ceuta on Africas North coast, registering -11.6%.