April 2023 Mortgage figures Spain


New Mortgages in Spain decrease in month

Economic pressures may have started to put pressure on lending in Spain. According to April 2023 mortgages Spain.

Whilst due to the Easter Break Aprils home loan numbers normally come in below March. This year the decrease was higher. The highest decrease in 5 years.

Numbers, capital lent and average loan size all decrease

In total 27.053 new Mortgages in Spain completed. Against March this was a decrease of 25.2%. Also down 18.3% against same month of last year. After a couple of tough months the year to date figures are also negative at minus 8.4%.

Capital lent at 3.707.777 mk was down 28.2% on last month. Decreasing by 21.6% against same month of last year. Year to date capital lent is now down 9% on same time of last year.

The average loan size dipped in April. At 136.945 this was 4% below last month. Minus 4.1% against last year and year to date minus 0.78%.

In total of all new credit released into market 65.7% went to residential home loans. This is in line with current averages.

Mortgage a holiday home Spain

Interest rates increase

Interest rates increased as an average in the month. The average home loan in Spain is now at 3.09%. This was 1.32% above the average rate for March. The average rate is still well behind the Euribor. Euribor in April was 3.87%. This was based on a 24 year term.

Average rates on variable product type offered loans is nearer to 5%. Fixed rates can still be achieved but at an average of 4.5%. For Mortgages in Spain non residents

Fixed rates still favoured product type

For completions in the month. Registered at land registry. 38.7% were contracted on a variable rate. Fixed rates made up 61.3% of all new Spanish mortgages. This is a slight drop for fixed rate products. As rates rise some borrowers may have decided to take the higher variable rate as a mortgage product type. In order to take advantage of rates dropping in the future. Rather than tie themselves into a longer term higher fixed rate.

The average rate for variable loans was 2.78%. Average rate for fixed 3.29%.

Regional performance April 2023 mortgages Spain

Regionally Murcia is down by 26.8% year to date. Cataluña 27% and the Balearics 28.4%.

The Canaries are holding up well at minus 8% as is Valencia at minus 5.9%.

Andalucía was the region with the highest absolute new mortgages in Spain with 5,473 new loans registered in the month.

Cancelled loans higher than new loans in Spain

The total amount of loans cancelled was 32.737. This is now the 3rd month Spanish lenders have experienced a net outflow to their loan books. This will put pressure on profits. Due to ancillary products also being lost at redemption.

Foreclosures and new house sales Spain

Whilst rates have been increasing and seem to be affecting new loans, foreclosures remain low. The first trimester figures show repossessions down 14.9% on the previous trimester. Also 25.6% on same trimester of last year.

49.2% of all foreclosures were main homes. The majority therefore being related to business or second homes.

House sales look to be slowing. Aprils total house sales were 35.057. In comparison to 45.309 sales in March.

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