MORTGAGE LENDING: Figures continue to rise

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MORTGAGE LENDING: Figures continue to rise. Photo: Shutterstock

THE number of mortgages granted in Spain rose by 20.4 per cent in 2018.

In October, 30,356 were registered, an increase of more than 20 per cent on the previous period the year before.

By the same month, nearly 300,000 mortgages had been granted across Spain, an increase of 10.7 per cent on the number granted between January and October 2017.  Experts say they think 2018 may turn out to have the highest figures since 2011.

Meanwhile, the amount of capital lent in mortgages increased proportionally with the increase in the number granted, with the amount going up by 25.9 per cent.  The figure has increased in 17 of the last 18 months, reflecting the boom in the property market.

During October this year, the average mortgage granted was €126,926, at an interest rate of 2.63 per cent over a 24-year term.  Meanwhile, 60,4 per cent of mortgages were offered out at a variable rate, compared to 39.6 per cent at fixed rate.

During the first 10 months of 2018, the overall amount of borrowed capital increased by 16.6 per cent during January to October the previous year.  Experts believe if the trend continues as it has done, there will be between 335,000 and 345,000 mortgages handed out in 2018.  The previous best figures were found in 2011, when more than 400,000 mortgages were granted.

The lending boom was most notable in Navarra, north-east Spain, where the number of mortgages offered increased by 53.7 per cent.  The figure remained high in Catalonia too, at 40.7 per cent, while Aragon received a boost of 36.8 per cent from the previous year.

The highest amount of capital lent out went to Madrid, where property-owners received a total of €1,041.1 million in mortgages.  The second-highest borrowing was to be found in Catalonia at €886.4 million, and Andalucia at €619.8 million.  These figures follow the general trends seen across Spain, which has seen the property markets in Madrid, Catalonia, and Andalucia particularly booming.

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