Costa Tropical Properties » Spanish Mortgages

Banks Bad Debts Rise in Spain

Costa Tropical Properties — Fri, 17 Apr 2009 09:15:31 +0000

Late payment of the loans granted by banks, funds and cooperatives operating in Spain to businesses and individuals reached 4% in February, a level not reached for over twelve years, specifically since November 1996.

According to data released today by the Bank of Spain, the rate of default in February is more than triple the 1.04% recorded a year earlier, although its growth rate from month to month has slowed slightly as the increase over the January being 3.80% lower than in January compared with December, when it stood at 3.29%.

This ratio represents a balance of bad loans of 73,935 million euros between banks, cash and credit, compared with 68,180 million which accounted for the previous month, which implies a rebound of 8.4%.

Fall in Spanish Mortgage Lending

Costa Tropical Properties — Thu, 26 Mar 2009 10:26:27 +0000

The number of mortgaged homes in January fell 43.5% compared to same month of 2008, to 53,017, while the borrowed capital for these transactions amounted to 6,472.9 million euros, representing a decrease of 51 7%.

According to the National Statistics Institute (INE), the average amount of mortgages on housing, fell for twelfth consecutive month in January and stood at 122,091 euros, 14.5% less than the same month of 2008.

In November, the capital provided for the total urban estates joined 12,002.4 million, 43.8% less compared to January 2008, and the number of mortgaged farms fell 38.6% over the same period , to 82,614.

Moreover, the regions with the highest average amount mortgaged were the Community of Madrid, with 219,242 euros, and Navarre, with 202,079 euros.

Looking to Buy in Spain?

Costa Tropical Properties — Fri, 24 Oct 2008 09:19:08 +0000

Those who want to live in Spain should buy now as there are plenty of bargains, but those looking to invest should wait.

There are currently many property bargains on the market in Spain as people become desperate to sell their homes however, according to an industry expert, although now is an ideal time to buy if you are looking to relocate to Spain, those looking to invest should wait.

However, if you are considering buying in Spain best advice would be to considering taking out a mortgage with a UK bank as many Spanish banks have stopped lending for property purchases due to the current climate.

For those looking for a permanent or holiday home, now could be an ideal time to snap up a bargain, but serious investors are advised to wait.

For example, renting is still popular on the costas, with over 13 million British visitors a year, so demand for holiday lets is always high. Renting is a good way of covering your mortgage and during peak season you may even be able to make some additional income as well. You can then transfer any money you make in Euros into Pounds and also gain money due to the rising Euro against the Pound exchange rate.

Sources quote that Spanish property owners are making as much as 15 per profit by switching their Euro savings back into pounds sterling. In January 2007, £1 would have bought you €1.52. Today £1 will get you only €1.25. Even with the currency transfer costs you should still make a profit.