Newly issued mortgages fall as lending costs rise

30th November 2007, Comments 0 comments

30 November 2007, Madrid - The number of new mortgages issued in Spain in September fell 10.39 percent from the same month a year earlier, while the average value of the home loans climbed 3.45 percent to €150,328.

30 November 2007

Madrid - The number of new mortgages issued in Spain in September fell 10.39 percent from the same month a year earlier, while the average value of the home loans climbed 3.45 percent to €150,328.

However, compared to mortgages issued in August, the average value was 1.32 percent lower. Savings banks continued to dominate the market with a 58.3-percent share in September, compared to the 33-percent share maintained by normal banks.

The slowdown in the mortgage sector follows international credit turmoil sparked by this summer's US subprime mortgage market collapse and the end of a 10-year property boom in Spain. The Bank of Spain has consistently warned that both Spanish consumers and businesses have excessive levels of debt.

[Copyright EL PAÍS, SL. 2007]

Subject: Spanish news


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