Outstanding Mortgage Lending Balance Dropped by 3.6% in June
The balance of mortgages outstanding in Spain fell by 3.6% in June, compared with the same month of the previous year, to stand at a total of 670,185 million euros, according to figures published in a press release last week by the Spanish Mortgage Association (AHE).
In monthly terms, this balance reduced by 0.2% in June over the previous month, while in the cumulative figures to June this amounted to a decline of 1.7%. Banks and savings banks accounted for practically all of this outstanding amount, with a balance of 609,978 million euros, although this amount also represents a reduction of 3.6% over the previous year.
In terms of the total volume of managed credit, June closed with a year-on-year decline of 3.8%, to 680,086 million euros.
Moreover, El Economista reported that the AHE maintains that the Spanish mortgage market has evolved “positively” in the first half of the year, registering some data which corroborates a “gradual and progressive recovery of the sector”. They also highlighted the positive evolution of the indebtedness in the private residential sector, which in June stood at 9.52%, the best data since 2012.
With regard to new mortgages, in the first six months of the year a total of 208,444 mortgages were constituted, of which some 70.3% related to housing. In the first half of the year the number of mortgages on housing increased by 20.1%, compared to the same period in 2015, reaching a total of 146,605.
Between January and June, the value of the new mortgages on housing exceeded 15,800 million euros, representing an increase of 24.2% year-on-year, while the average value of a home mortgage in the first half of the year reached 107,886 euros, which is 3.4% more than in the same period of 2015.
4 Aug 2016