Mortgages more difficult
Spanish financial institutions tightened slightly the criteria for granting loans for house purchase to families and businesses in the third quarter of the year, while it made a little easier at the time of grant funding for consumption.
This is one of the most important data from the Survey on Bank Loans in Spain on the third quarter of 2006, published today by the Bank of Spain, adding that this seems to demonstrate the interest of banks and boxes to encourage the financing consumption as alternative to foreclosure.
As for the present quarter, the Bank of Spain believes that the Spanish and European entities will continue to relax the criteria for granting funding to consumption and the demand for these loans continue to grow.
By contrast, explains the supervising agency, the demand for loans for house purchase continued slowing in July-September, something expected to continue happening this quarter is not over yet.
As for the supply of mortgage financing for homes, the Bank of Spain observed a slight contraction compared to increases of the two previous quarters, which could be caused by the deterioration in expectations about the housing market from financial institutions.
However, while the entities are what made it more difficult for their customers when granting home loans, the conditions of new loans were granted that it was more flexible, such as periods of repayment.
Written by Carlos Lopez on November 30, 2006 with 0 comments.
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