Mortgage Loans Grow as Spanish Economy Strengthens
Spanish mortgage approvals increased by 19.8% in 2015, the largest year-on-year increase the sector has seen since 2003, according to latest data by Spain’s National Statistics Institute (INE).
The total amount of capital borrowed for mortgages across Spain in 2015 amounted to €25.9 billion, the largest increase since 2005 and 24.1% more than 2014.
In 2008, when the recession hit Spain, property prices fell by an average of 40%, unemployment rates soared and wages fell. Over the past few years the country has clawed its way out of recession and things are starting to look up; low interest rates have encouraged mortgage lending, property prices are starting to rise and in 2015 the Spanish economy grew by 3.2%, one of the fastest rates in the EU.
There is still some way to go before we see the value of mortgage loans reaching €188.3 billion, like the record high reached in 2006, but with December marking the 19th consecutive month of growth the trend is likely to continue in 2016.
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