PERCENTAGE CHANGES ON PREVIOUS PERIODS
1 month -8.3pc
1 year -61.8pc
That means borrowers with annually reseting mortgages can expect a decline in their monthly payments 😀 This is great news for existing borrowers, who are now getting a free ride, or even getting paid to borrow in some cases, as Chopera explains in this thread
New mortgage lending in March = 16,270, a new record low and -34pc in a year.
The graphs above illustrate the continued drama of credit crunchiness in Spain. The banks are not lending on property, and Spaniards have no savings, so house prices go down, rental rates go up, and foreigners with cash can go bargain hunting 🙂
Falling prices are also suppressing demand as those who can buy wait for lower prices.
Why are banks not lending? Because they lent so foolishly in the past they are now having to deal with bad loans and write downs that are hammering their capital ratios. It will take more time for them to work this through.
The average loan value request in the first 4 months of the year fell 8.07pc according to Bankimia (a financial products website). Smaller, fewer mortgages means less money chasing property = house price suppression.