Is now the right time to apply for a mortgage in Spain?
It has been on your mind now for a long time, all the way through the crash in the market, that home you have always wanted to call your own in Spain. Now you are hearing rumours of things getting better, in fact speeding up in this area. Banks are lending more for mortgages in Spain again, the economy is healing and property sales in Marbella are starting to get back to what seems like a millenia ago.
So, do you now have the dilemma of possibly missing the boat if you don’t act promptly? If you’re not sure about the state of the financial market in Spain at the moment and need a little reassurance, then let us do for you right now.
Not sure about the state of the financial and property market in Spain?
There are a lot of good and bad mortgages on the market. The vast majority of mortgages sold in Spain are variable rate mortgages meaning mortgage repayments may vary according to the interest rates / base rate set by the European Central Bank. So it is safe to say that it is important to receive reliable independent mortgage advice when researching how to apply for a mortgage in Spain.
It is true yes, that the property market has in fact bottomed out and is gaining a steady momentum back to bygone days. It is true that sales of properties have in fact gone up in the last year, and bank loans on the costa del sol are now being handed out to match the demand, especially to overseas investors in resales and luxury development. Although there is still no need to panic right now, as if you have been considering a move here to Spain, there is still time for you to do so. So breath…
Let’s give you some of the figures.
There were 26,455 home sales in May, an increase of 5% on last year, and 11% on the year before that. So yes this does indeed show a substantial improvement and a possible taste things to come.There is a lot to be said at the moment about the resale market as aside from interest in luxury properties, coming from foreign buyers, resale is most definitely at the top of hot properties selling at this time. Figures show us that the resale market, was up 34% over 12 months, whilst new home sales plunged 42% to just over 6,000.
However loans for new builds and construction loans, will in fact increase as banks will now be more encouraged to so under certain regulations and where developers can show a proven track record, either in or out of Spain.
The Notaries, and the National Institute of Statistics (INE), give us an average of resale figures for Aug. Due to the holidays it is a rough estimate but nonetheless helpful. The market still shows signs of a steady increase with between 20,000 and 25,000 home sales per month. This is in comparison with 77,433 home sales back in January 2007.
However, it looks like the market is rising and the bottom is finally out. Next question is when will Spain reach a normal level of home sales and show a stability in the recovery? Well figures are showing that since 2008, an increase that has not been seen for a consecutive 4 straight months in the past two years.
A lot of this can be seen in many coastal regions for example, including the Costa del Sol, which has seen a massive increase in sales and has actually gone above and beyond the national average for the month June.
Spain is not out of the mire quite yet but it is hard to deny that there is a definite potential for Spanish property and a surge in activity that is gaining momentum for sure. With this said, it is hard not to admit that the worst is over and the best is yet to come.
So if it is still your dream to buy a property in Spain and need the best advice from a trusted and well established mortgage broker, then now is the time to do that at least. There will be no pressure involved, just friendly assistance and mortgage advice in Spain that’s right for you. We know how important these first steps are so we will be here for you every step of the way.
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