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Only Caixabank and Bankinter are saved from the collapse in the granting of mortgages

Date: February 28, 2024 Time: 18:04:17

The rise in the Euribor, the index to which most mortgages in Spain are referenced, together with a high rise are contracting the demand for mortgages. A trend that has been confirmed by large banks during the presentation of first quarter results, albeit with nuances. The country’s main banks have recognized a certain slowdown in applications, also coinciding with one of the home buying and selling operations and a moderation in prices, but not the same for all.

Thus, despite this slowdown, which has begun to manifest itself clearly in the first three months of 2023 and which is expected to become more pronounced as the months go by, there are exceptions. Among the listed banks, Caixabank and Bank inter are the only entities that have seen their mortgage granting improve year-on-year. In addition, both entities highlight that these housing loans are being signed with a strong predilection for the fixed rate despite the fact that the loans have become more expensive precisely because of the rise in the index to which most variable mortgages are referenced.

In this sense, and for Caixabank, during the first quarter of the year, new mortgage production, that is, the volume of new mortgage firms, stood at 2,200 million euros, which represents an improvement of 5.9 % in year-on-year terms, when it stood at 2,100 million euros at the end of March 2022. It should be noted that a year ago, the Euribor was still negative (it ended March at -0.237%). Compared to 2021, when the European Central Bank (ECB) presented negative interest rates and, therefore, there was no rumored change in its monetary policy in the short term, the new mortgage production amounted to 1,900 million euros.

Regarding how these mortgages are being formalized, the bank directed by Gonzalo Gortázar highlights that 90% are at a fixed rate, while the price (here the bank makes no distinctions) stands at 4.48%, 257 basis points more. than a year ago, when it stood at 1.91%. Regarding the offer that the bank manages, the subsidized interest rate of your “Casa Fácil fixed rate” mortgage stands at 3.85%.

Bankinter is the other entity that has also managed to improve the balance of new mortgage concessions despite this more complicated environment and the strong competition that comes from digital banking. The bank increased its starting volume in the first three months of the year by 2% to 1,700 million euros, where 42% of the new mortgages were signed at a fixed rate, compared to 1,300 million euros a year ago. Here both the commercial work of Bankinter, which has gone from 1,100 million to 1,400 million, and Evo Banco have been key. Its digital subsidiary has contributed 100 million euros to the group. As for the price, the interest rate of your loan to purchase a fixed-rate home is 3.45%.

Banco Sabadell and Unicaja Banco lose pace

Within banks with a strong exposure to the national business and especially to mortgages, Banco Sabadell and Unicaja Banco have not managed to repeat the figures of a year ago. Thus, for Spain, although the new mortgage production at Banco Sabadell amounted to 1,025 million euros, this figure represents a drop of 19% in year-on-year terms, when it stood at 1,261 million euros, and 32% compared to the last scam quarter of 2022. The price of your subsidized fixed-rate mortgage scaled up to 3.5%.

The change, the decrease for Unicaja Banco has been more pronounced in the last twelve months, since at the start of 2022 the volume of new operations amounted to 1,282 million euros, compared to the 674 million euros registered during this financial year , which represents a drop of 47%. As for the big banks, Banco Santander has seen how credit in Spain has fallen by 3%, although the entity does not provide disaggregated data. For BBVA, mortgage credit at the group level will remain practically stable in the first quarter of the year.

But this drop in new mortgage production has not only been noticed by banks, but is also reflected in the Bank of Spain’s statistics. Thus, in the first three months of the year, the new mortgage balance has registered a decrease of 15% in the first three months of the year, 13,348 million euros, compared to 15,810 million euros a year ago, despite the fact that in March, the outstanding balance grew by slightly more than 1,000 million compared to the data for February.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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