Nearly half of the mortgages granted in 2006 exceeded the transmission price declared to registrars, figure that was reduced to 25% in 2012 and to 10% at the end of 2016, according to data from a study published on Tuesday by the Bank of Spain. The study relates the loans granted for the purchase of housing with the appraisal values and with the transmission amounts and also uses the data declared by the households in the Financial Survey of Families.
The authors of this paper -Olympia Bover, María Torrado and Ernesto Villanueva- reflect that the ratio between the value of the medium loan over the median purchase price reached 110% in 2007 and then went down to 64% in 2012. In the Subsequent years that ratio has increased again and at the end of 2016 it stands at 80%.
The ratio is more stable if the value of the loan is compared with the appraised value, whose average has remained practically stable around 70% during the period 2004-2016, with slight fluctuations: low to 66% in 2012 and 2013 and goes up to 72% in 2016.
In addition, the authors note that as of 2010, the proportion of mortgages whose amounts were between 80 and 100% of the transmission price increased. Banks reserve this type of loan, in which they grant 100% of the appraised value of the home, for the granting of mortgages on foreclosed assets to facilitate their sale or for their best customers.
Likewise, the study published on Tuesday reflects that appraisal values grew between 2004 and 2008 at a faster rate than transmission prices and fell more between 2008 and 2016.
The authors of the report use the information of the appraisal value of the Register of Mortgages constitution of the College of Registrars and the transmission of the prices of those registered in the Register of Transmission of Assets. They also use the information of the Financial Survey of Families prepared by the Bank of Spain itself.