Data from the INE (National Statistics Institute) shows that mortgage concessions increased by 29.2% year-on-year in February. It marks the ninth consecutive month of rises in concessions and demonstrates that finance is becoming more readily available which is a good sign for the Spanish real estate sector.
The increase meant that a total of 21,298 mortgages were granted in February up by over 75% on the all time low recorded in August 2013 of just 12,147 concessions. The number of concessions has also risen on a monthly basis with 1.8% more mortgages being granted in February than in January (20,913).
The average mortgage amount rose in February by 37.1% to €109,486 showing that banks are becoming more confident in lending larger amounts and also that individuals are feeling less risk averse when taking on mortgages. Total mortgage finance conceded in February was also up by 37.1% to €2.33 billion.
The regions in which the highest numbers of mortgages were granted in February were Madrid: 4,066, Andalucia: 4,032 and Catalonia: 3,214. The regions in which the highest amount of mortgage finance was conceded were the same but in a different order, Madrid: €606.7 million, Catalonia: €405.1 million and Andalucia: €376.8 million.
Falling interest rates
Another interesting statistic was that average interest rates on mortgages conceded this February were down 18.5% year-on-year to 3.35% (February 2014: 4.11%). This will be one of the factors which is stimulating mortgage borrowing as the Euribor remains at extremely low levels and the banks start to decrease their commission rates.