Neither the slowdown of the sale of houses neither the tax uncertainty generated by the Supreme Court They managed to stop the advance of mortgages last November. According to data from the INE, from property registers throughout Spain, mortgages on housing grew by 14.2% in the eleventh month of 2018. In absolute figures, 28,835 loans were granted. The average interest of the same also dropped two tenths compared to October, to stand at 2.61%. The average amount grew by 5.5% year-on-year and was 130,651 euros.
The chaos in the high court for the payment of the Tax on Documented Legal Acts (IAJD), which covered three weeks between October and November, was thus settled from the point of view of the mortgage market in those two months with double-digit growth. That is, without any sign that it affected the granting of loans. What's more, if sales broke down and home mortgages grew, that means fewer houses were bought in cash and the problem was not in the credit flow.
"The data show the high dynamism maintained by the residential market, only possible in the face of a responsible and transparent offer of loans by banks," the Spanish Banking Association said in a statement. Fernando Encinar, head of studies of the Idealista portal, has pointed out, however, that the INE data may not reflect the political and judicial turbulence "due to reflect operations of previous months" due to the lagging of the survey.
Nor is a statistical reflection observed at the moment in the interest paid by citizens for loans. According to the data of the INE was 2.61% compared to 2.63% in October, when it rose four tenths of a beat). It is, in any case, of normal inter-monthly oscillations. In this case, it is explained by a slight upturn in variable interest loans (lower than the fixed rate). Specifically, 60.7% of the mortgages granted contemplated this interest rate (by 60.4% in October), which as a mean was fixed at 2.42%. The fixed rate stood at an average of 2.99%, the same percentage as in the previous month.
Beatriz Toribio, director of studies at Fotocasa, points out that "we could attend to an increase in the mortgage market" in 2019 "mainly due to the real estate loan law that the Senate must approve in March." The reason, according to the expert, is that this rule will impose new expenses to the entities, which could end up affecting it on the client, although he adds that "the Spanish mortgage market is very competitive and could soften that possible growth".
Canary Islands, where mortgages are growing the most
By autonomous communities, Madrid (5,595), Cataluña (5,363) and Andalucía (5,209) led the creation of mortgages. However, the ones with the highest year-on-year growth were Canarias (28.6%), Cataluña (25%) and Comunidad Valenciana (24.4%). On the other hand, loans with respect to November 2017 fell in the Basque Country, Murcia, Galicia, Cantabria and Aragón.
With respect to total mortgages, adding to those of housing those that were set up to buy other types of urban or rural properties, in November 40,941 were granted, with an interannual increase of 16.6%. The average amount of these loans stood at 141,708 euros, 3.2% less than in the eleventh month of 2017.