Mortgage activity in Spain reaches 6-year high

Average loan capital rose to its highest level since February 2011. Following the news that the number of residential property sales in Spain in June was again close to its highest level in nine years, it is no surprise that the number of mortgages has also increased.

In fact, the figure of 29,516 new mortgages is the highest monthly total since September 2011 and represents an increase of 16.5 percent compared to the June 2016 total. At the same time, the total amount of borrowed capital was 4.4 percent higher than in the same month last year, leading to an average mortgage value of €116,629, the highest since February 2011.

In other words, during June the largest number of loans were issued in the last 6 years, and the average loan amount was also at a six-year maximum. Buying activity is growing, real estate is becoming more expensive, therefore banks are more willing to provide loans.

A regional breakdown of June's figures shows that mortgage lending activity has increased year-on-year in all but four of Spain's 17 regions, with the most significant being Andalusia (67%), La Rioja (66%), the Canary Islands (60%) and Madrid (38%).

By all indications, the mortgage market is only moving in an upward direction. During the first half of 2017, almost 159,000 new mortgages were registered, up 8 percent from the same period last year, while the current 12-month total is now 8.4 percent higher than a year ago, at 293,716.