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Murcia mortgage activity hits 6-and-a-half–year high!

The total loan capital involved was more than in any month in the last 7 years

Figures published earlier this week showed that the number of residential properties bought and sold in the Region of Murcia during September 2018 was 24 per cent higher than in the same month last year, and although more figures released this Friday reveal that there continues to be a comparatively slight increase in the number of mortgage loans granted the level of activity during the month was higher than at any point since May 2012.

The number of new mortgages registered during the month reached 866, according to the government’s central statistics unit, 10 per cent more than in September 2017, while at the same time the total loan capital involved was 75,084,000 euros, the highest figure since September 2011. The result was an average loan capital of 86,702 euros, a spectacular 16 per cent more than in the same month last year.

These data come in the context of a 9.5 per cent year-on-year rise in mortgage lending in Spain as a whole, where during September the figure of 32,457 was the highest in 7 years.

The September figures represent a continuation of the long-term upward trend in the amount of mortgage activity in the Murcia and Spanish property markets: the running 12-monthly total in Murcia currently stands at 8,283 following an increase of 5 per cent over the last year, while in the whole of Spain the figure is 7.8 per cent higher, and the data for the first nine months of 2018 show increases of 7.1 per cent in Murcia and 9.7 per cent in Spain.

So significant is the increased confidence of the banks to lend against current market values of residential property in Spain that the running 12-monthly totals are now 69 per cent higher in Murcia than 4 and a half years ago, and 86 per cent higher in the whole of Spain!

However, there is a strong likelihood that a dent will be put into these figures by the data for October when they are released, due to the effect of the uncertainty over who should pay the judicial acts tax on new mortgages: eventually that debate was settled early in November by the national government with a modification of the law which states that the responsibility lies with the lending bank.

Source: Murcia Today

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