Mortgage Lending Falls by 7% in April
June 20th, 2012
The total balance of mortgage loans from financial institutions in April stood at 966,514 million euros, representing a decrease of 7.05% year-on-year and the biggest drop in the recorded series.
This is according to the latest data from the Spanish Mortgage Association, confirming the contraction suffered by this activity in Spain over the last four years, with more pronounced declines being recorded month after month.
The figures show the reversal in fortunes that has affected the mortgage industry since the outbreak of the crisis of subprime mortgages in the U.S. in August 2007, and contrasts with the growth in excess of 20% that this industry experienced in the acute phase of the real estate boom in Spain.
The financial sector closed April with 8,780 million euros less mortgage balance than the previous month, and 20,000 million euros less compared to February, resulting in a decrease of 0.9%, while year-on-year the balance reduced by 73,264 million euros, placing the total balance at 966,514 million euros – included within this balance is a figure of 176,058 million euros in securitised mortgage assets.
Positive Results for Credit Institutions
Of the total balance, 887,416 million euros corresponded to banks and savings banks (-7.64%), 65,409 million euros to credit unions (-4.95%) and 13,689 million euros to credit institutions, resulting in a spectacular year-on-year growth of 35%.
Meanwhile, El Mundo reported that the total balance of outstanding securitised mortgage assets – conversion of loans into bonds for subsequent sale – reached 387,173 million euros in April, which was 6.8% less than in the same month last year.
Related Posts
- Spanish Mortgage Lending Lows
- Mortgages Drop Most in Two Years with Cut of 38% in April
- UK Mortgage Lending Soars
