Mortgage data released in Spain
Yesterday saw the monthly release on Spanish Mortgages constituted for the month of July.
The report from the INE in Spain outlines how many loans were registered in July versus those cancelled and redeemed along with information on the regional numbers and split of type of lending.
Loan levels decrease
The number of loans registered in Spain dropped in July by a massive 42% from the July of the previous year. The average value of each loan was marginally higher. The number of new mortgages registered against dwellings dropped 2% from the month of June and the current year on year drop on number of residential loans registered now stands at 26.1% less than the previous year. The amount of capital lent this year has now fallen by 29.3% from 2012 to date.
Spanish Mortgages for urban dwellings remains 48.4% of total capital lent, with Rustica or country properties only making up 8.9% of the total lent and land 13.6% of capital lent.
Variable rate products
91.2% of all loans constituted in the month were on a variable rate and the Euribor was the favoured index making up 84.2% of all new contracts. Fixed rate mortgages still remain few and far between. The average interest rate for July was 4.40% for mortgages granted on dwellings small increase on the rates as of July 2012.
Banks continued in July to drop the amount of loans they allowed to complete under subrogation, so the practice of allowing buyers to take over existing loans. Spanish Banks have moved away from agreeing subrogation as existing loans hold much better terms than new loans. July 2012 to the same month in 2013 showed a drop in subrogation changing the name of the holder of 58%.
For yet another consecutive month the amount of Spanish mortgages cancelled outstripped the amount of new loans. The amount of loans cancelled for dwellings totaled 24,599 the amount of new loans registered on dwellings totaled 13,777. This is one of the biggest net outflows since the crisis began.