The Spanish Mortgage Association (AHE) predicts that 2014 will be the year that will see a loosening of the restrictions on mortgage credit.
The difficulty that potential buyers are having in securing mortgage finance for house purchases has been one of the factors increasing the severity of the Spanish real estate crisis as well as being one its main causes.
The AHE believes that the change will come about due to better access to the financial markets for Spanish companies, an improvement in macroeconomic conditions, the strength of Spanish institutions and the reduction of indebtedness in the private sector.
Statistics from the AHE for 2012 show that mortgage credit was granted for 214,399 purchases down 12% on 2011 and 61% less than pre-crisis levels.
A sign inside a Spanish branch of Santander that reads ‘We have the mortgage that you need’
Let’s hope they are right. The lack of mortgage financing is a big part of the housing market’s problems, though not the only one.
New here, and agreed. Looser (albeit responsible) lending could help to drive the market considerably. I have friends/clients ready to buy w/ marginal credit but a decent debt-to-income ratio. I’m not sure a 615 w/ steady income should limit someone to bad credit unsecured loans, especially when one small blemish could crush a credit score.
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