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The default on mortgages exceeds 4% for the first time since the crisis started.

The default on mortgages of families exceeded 4% in March, due to the drop on financing and the increase of non-payments. This rate continues to be fairly low in the current economical context, with an economy in recession and an unemployment rate of 27,2%.

Nevertheless, after a continuous increase, the rate has reached a level which had not be seen during this crisis. In March, it closed at 4,13%, according to the figures that will be published this morning by the Bank of Spain. In the first quarter of last year, the default rate for families was at 3%, and therefore it has increased one point in one year.

The estimations show that the non-payments will continue to increase, at least until the situation in the labor market starts to change. Most experts agree that mortgages will not become a great problem for Spanish banks.

The estimations show that the increases will be moderate and that the institutions will not need more provisions to face the situation. However the credit for the acquisition of a property will continue to decrease, and this will not help the market. It closed the quarter at 598.371 million Euros, its lowest level in the last six years.

The default of credits granted for the acquisition of consumer goods closed at 6,23% in the first quarter, due mainly to the decrease of the credit balance.

Source: Expansión