Euroresiuk

Number of mortgages falling in Spain

The latest figures released by the National Institute for Statistics show that the number of mortgages conceded by Spain’s banks and building societies has not fully recovered although the rate by which it has fallen has improved slightly. The number of mortgages taken out for the purpose of buying property fell by in July for the third consecutive month by 6.8% compared to the same month in 2009 with a total of 55,570 operations.

However, although the rate at which the number of mortgages conceded by banks and building societies has fallen less compared to July last year this is not altogether a positive figure because the number of mortgages conceded in July last year fell by a massive 19%. Nevertheless compared to last year the number of mortgages taken out for the purpose of buying a property fell by 10.8% in June 2010 which is better than figures for June 2009.

Furthermore the number of mortgages taken out went up by 0.8% in July compared to June, a month in which the number of mortgages fell by 1.

1%. These figures are also positive if the increase in VAT on new properties from 7% to 8%, which came into effect in July, is taken into account.

In addition house prices have recovered slightly over the last few months and during the second quarter of this year they went up for the first time since the beginning of the crisis in the housing market with an increase of 1.6%. Although the increase in prices is only on a quarterly basis the amount by which mortgages increased rose to 6% leaving an average mortgage at 122,238 euros. On the other hand, the total capital lent by banks and building societies was 6,792.7 million euros which is a fall of 1.3% compared to last year.