Mortgage borrowing rises by 23pc
12 January 2004
MADRID – Mortgage borrowing rose by over 23 percent, according to a report by financial analysts released Monday. The total borrowed by Spaniards by November last year stood at EUR456 billion – EUR86 billion more than by the same month in 2002.
The represented a year-on-year rise in the amount of credit which Spaniards took on to pay for mortgages of 23.4 percent.
The total amount borrowed in November – the last month that data was available – was a staggering EUR456 billion.
According to research by the Spanish Mortgage Association (AHE), the rising trend in November and drawing on preliminary information showed a similar increase for the month of December.
This means that last year ended with an average increase of 23 percent in total mortage borrowing.
However, anaylists said that despite repeated warnings from the Bank of Spain, of an excessive rise in the amount borrowed by the private sector, this level of credit does not appear to have damaged the private sector.
In 2002, the AHE predicted that mortgage borrowing would rise by 20.8 percent during 2003 – but this was far exceeded.
The AHE also predict that even though all the warnings point to a slow-down in credit in 2004, the report added: “If these types of reference maintain a stable trajectory, they could see a rise in credit of 20 percent during the first third of the new year”.
The report said the banks with the strongest management of mortage credit, saw the biggest rise in borrowing year on year of 22.8 percent.
Meanwhile, the credit coperatives showed rises of 21.1 percent and the savings banks saw an average rise of 20.8 percent, showing lower rises than the banks.
[Copyright EFE with Expatica]
Subject: Spanish news