Number of Spanish mortgages falls

The number of mortgages taken out on properties in Spain fell in April by 38.2 per cent, compared with the same period a year earlier - and registered a month-on-month drop of 27.4 per cent.

Data published by the National Statistics Institute also revealed that the average value of mortgages for residential property in Spain decreased by 6.1 per cent in April compared to a year earlier and now stands at €106,889 (£95,327).

Average interest rates on mortgages in Spain had also risen to 4.04 per cent, up by 2.5 per cent over March this year.

In addition, 94.2 per cent of the home loans set up in April were on variable rates of interest.

Speaking to Bloomberg, Javier Diaz-Gimenez, an economics professor at Madrid's IESE Business School, said: "This addition to a long series of negative data confirms Spain's growth is weak, but it is still too early to tell whether the real estate sector is actually worsening."
 

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