Mortgage lending in Spain up for fourth consecutive month

The most substantial growth in mortgage lending in Spain since 2007

According to data published last week by Spain’s Instituto Nacional de Estadística (National Statistics Institute), new mortgage approvals recorded in the country’s land registries in September totalled 19,323, the largest number since February 2013, and a massive 29.8 per cent more than in September of last year…

As you’d expect, Madrid was in pole position with 4,092 mortgages signed in September 2014; followed by Andalucía in second place with 3,301; and Catalonia third with 2,777. In terms of the volume of mortgage capital loaned, the Madrid region again led the field (€612.3 million); while Catalonia (€330.4 million) and Andalucía (€296.9 million) were in second and third place respectively.Taking into account September’s year on year rise, mortgages constituted for residential properties have now accrued four consecutive months of double-figure increases with June seeing a rise of nearly 19 per cent, followed in July by a 28.8 per cent rise, and August up by 24 per cent.

Overall, this is the most substantial growth in mortgage lending in Spain since 2007. And the fact that banks are at last loosening their grip on the purse strings clearly indicates that they – nowadays the largest real estate companies in Spain – are of the belief that house prices are unlikely to fall much further.