According to the Bank of Spain, home loans amounted to 510,422 million euros in January, 2,844 million less than the previous month
The hole that inflation has left in consumers’ wallets was reflected in a notable decline in home loans in January, as well as consumer loans to Spanish households. The loss of purchasing power has become one of the major challenges facing banks, which have become more choosy when it comes to lending and have become more expensive due to the rise in interest rates of the European Central Bank (ECB).
The aim is to keep out non-performing loans, as waste has managed to keep it below 3.5% on average, despite the economic difficulties caused by the energy and price crisis. The requirements to access a loan are therefore increasing. And the applicant’s profile is increasingly being monitored.
According to data published by the Bank of Spain on Wednesday, home loans amounted to 510.422 million euros in January, which is 2.844 million less than the previous month and 4.180 million less than a year ago, after seven consecutive months of declines.
These declines are related to the slowdown in home sales, given the surge in the Euribor, which surpassed 3.7% of the daily rate on Tuesday and ended February at 3.52%, making floating rate mortgages already taken out more expensive . the new loans in the sector. An increase in costs that would halt future owners’ purchasing decisions.
Figures from the Bank of Spain indicate that the amount households allocate to their homes continues to make up the bulk of all their debts, almost 73.5% of the total.
Loans to access a home aren’t the only ones to have noticed a certain drag at the start of the new year. Data from the Bank of Spain shows that loans that households allocate to consumption fell to €95,651 million in January, down from €96,687 million the month before.
However, the figure is still higher than the 92.046 million euros a year ago, showing that Spaniards have had to resort more forcefully to this type of borrowing to cover their expenses in recent months.
On the other hand, household loans for other purposes totaled EUR 86.320 million, less than the EUR 89.030 million a year earlier and about the same figure as the previous month (86.180 million).
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
