INE: September Mortgage Lending Up 29.8% YoY

26/11/2014 – Expansion

During the month of September, 19.323 mortgages for home purchase were approved, going up 29.8% from September 2013. Moreover, average amount rose by 10.6%, according to the latest provisional data of the Mortgage Statistics department of the main statistics office of Spain (or INE by its acronym in Spanish).

Precisely, average borrowed amount reported to property registers showed €107.850, with the total capital shooting up by 43.5% year-on-year and totalling at €2.08 billion.

The INE reminds the data proceeds from public deeds effected in months previous to the reference month.

Together with the September advance, mortgage lending in Spain has linked four consecutive months of sharp upsurges, starting from June´s 19%, followed by July´s 28.8% jump and a 24% one in August.

From the eight month, approvals rose by 28.5%, marking the biggest advance in the last five years. In these terms, borrowed capital grew by 35.3%, highest since September 2010.

From January to September, the number of mortgaged homes declined by 3.2% from the same period in 2013, with a 0.5% decrease in borrowed capital and a 2.7% rebound in average loan amount.

As usual, Madrid with its 4.092 contracts, Andalusia with 3.301 and Catalonia with 2.777 take the lead among the Spanish regions. Only two of ‘the autonomous comminities’ registered slumps in new mortgage lending over 2013: the Canaries (down 21.3%) and La Rioja (5.2%), while the biggest y-o-y jumps were seen in Madrid (up 64.3%), Navarre (56.9%) and Asturias (49.5%).

Speaking of the total capital borrowed, Madrid performed best gathering €612.3 million, followed by Catalonia and its €330.4 million score and Andalusia with €296.9 million.

Interest rates averaged at 3.59%, compared with August 4.15%.


Original article: Expansión

Translation: AURA REE