Spanish mortgage delinquency rates rise to 1%, whilst non-performing loans to developers surge

Spanish mortgage delinquency rates rose to 1% in the first quarter of the year, according to The Mortgage Association of Spain (AHE).

Mortgage delinquency rates were 53 basis points higher than the first quarter in 2007, and 27 basis points higher than the end of 2007, when the mortgage delinquency rate stood at 0.77%.

Savings banks have the biggest problem with non-performing loans, at 1.19%, compared to just 0.69% for ordinary banks.

Despite the increase in mortgage delinquencies, defaults are still close to historic lows. They are, however, expected to continue rising as Spain’s real estate slump bites.

The number of developers defaulting on their loans is also on the rise. The value of Non-performing loans to developers rose in the first quarter by 1.2 billion Euros compared to the end of 2007, an increase of 80%. Nevertheless, the delinquency rate amongst developers is still only 0.92%, up from 0.30% at the end of March 2007.