Mortgage approval rates hit seven-year high in Spain

Close to 30% more mortgages were granted in August this year compared to last, building upon already strong growth in the sector.

The month of August saw 26,583 new mortgages approved in Spain – the highest monthly figure since 2010, and a massive 29.1% increase on the same month last year.

The incessant upward trajectory of the Spanish property market has been evident in a series of data across the board all year. From the number of sales transactions, to prices, to regional growth and a positive outlook, Spanish real estate is in rude health…

This latest data, based on statistics published by the government’s central statistics unit, is perhaps one of the most accurate reflections of on-the-ground activity. The numbers show that the height of summer is once again peak home-buying season, and tally with economic data that reveals more and more Spaniards are feeling financially secure enough to take the property plunge.

Of course, British, Swedish, Irish, German and other foreign buyers have helped top up that figure, as evidenced by the fact that Andalucía – home of the Costa del Sol – saw the sharpest annual rise in August mortgage approvals. This year, 50.2% more mortgages were granted in Andalucía in August compared to last year.

Also on the up, albeit not so sharply, is the average loan capital per mortgage. This figure has risen 0.7% to €111,488, which while lower than the annual property price increase, is still an encouraging sign that the banks are finding the confidence to lend once again.

Year-to-date, the first eight months of 2017 has seen more than 210,000 mortgages approved – a 12.85% increase on the same period in 2016. And when looked at for the past 12 months, the increase is 12.1%: 306,000 mortgages were granted in Spain between August 2016 and August this year.