Loans increase in Tenerife and Spain as property prices become more affordable
The number of new Spanish property mortgages approved in May rose by 15per cent to 57,614 compared to the previous month, indicating that demand for property in Spain and Tenerife is rising, according to Spain’s National Institute of Statistics.
However, on an annual basis the volume of mortgages issued in May fell 23per cent, compared to the corresponding month last year.
The average mortgage value in May fell 14per cent to €121,120 (£102,560) year-on-year, but rose 5per cent month-on-month potentially reflecting the fact that cheaper properties in Spain and Tenerife are now available.
Overall new mortgage lending was €7bn, down 33per cent year-on-year, but 20per cent higher than April.
The average interest rate agreed for new mortgages in May was 4.6per cent, 11per cent lower in percentage terms than a year ago, and 2.2per cent lower than the previous month.
The majority – 96per cent – of all Spanish mortgages secured were on a variable rate, with the other 4per cent fixed.
