Mortgage lending rises in spain

Photo: Barbara Walsh

Mortgage lending has risen in Spain, according to new figures. 21,454 mortgages were approved in June 2015, says new data from the National Statistics Institute, up 26.3 per cent on the same month a year ago.

The figures, published by El Mundo, mark a growth even higher than the 10.9 per cent annual rise recorded in May 2015 and the 13th month of double-digit increases in a row.

The average value of mortgages also increased by 4.2 per cent year-on-year to hit €103,626, while the capital loans increased by 31.7 per cent to over €2,223 million.

On a monthly level, the growth in mortgage lending spells even more promising new for the Spanish housing market recovery: the number of mortgages issued jumped 8.7 per cent compared to May 2015, the biggest rise recorded in June for the past five years. The capital loaned also increased by 8.4 per cent month-on-month, a stark turnaround from the 4.6 per cent decrease recorded in the same month a year ago.

The trend is also far from a short-term uptick: the first half of the year has seen the number of mortgages rise 21.1 per cent compared to the first half of 2014, with the capital loaned up 25.3 per cent.