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| Mortgages are on the up and banks start to lend more. |
Spanish Mortgage Approval Rates hit Seven-Year High
Some 26,583 mortgages were approved in Spain during August,
making it the highest monthly figure since 2010, not to mention a massive
increase of 29.1% compared to the same month last year.
The continued upward trajectory of Spanish real estate has
been made clear by a range of data released over the year. Whether it’s the
number of transactions, or prices, or regional growth and overall outlook, the
Spanish real estate market is in good health and only growing.
This recent data, which comes from statistics released by the
Spanish central statistics unit, is perhaps the most accurate reflection of how
things are right now. The numbers tell us that the peak of summer is when the
most homes are bought, and the economic data shows that more and more Spaniards
feel financially secure enough to begin climbing the property ladder.
The figure is naturally topped up by buyers from Britain,
Sweden, Ireland, Germany, and other countries. This is shown by the fact that
Andalucía, home of the illustrious Costa del Sol, saw the highest annual
increase in August mortgage approvals. 50.2% more mortgages were approved in
Andalucía compared to August of last year.
The average mortgage amount is also increasing, albeit not
as sharply as mortgage approvals. The average mortgage amount has increased a
minor 0.7% to €111,488, which is still encouraging despite being lower than the
average increase in property prices. It shows that banks are once again feeling
confident enough to lend money.
When taken as year-to-date statistics, the first eight months
of 2017 saw over 210,000 mortgages approved, which is an increase of 12.85%
over the same period of 2016. When looked at in terms of the past 12 months,
the increase becomes 12.1% with 306,000 mortgages approved in Spain between
August 2016 and August 2017.
