AFTER seven years in the dark, the property market is finally awakening.
Banks are lending again, mortgage rates are down and borrowers can at last see the light at the end of the tunnel.
As the old adage goes: “The time to act is now!”
This January has – without a doubt – been the best January for borrowing since the economic crisis hit Spain in 2007.
Long may that continue. I predict that 2015 will be a much stronger year for both lenders and borrowers.
With a stabilising property market and mortgage rates as low as 2.1%, the opportunity to borrow in Spain has not looked this good for a long time.
Spain’s mortgage rates are now inline with the UK and France, between 2.1% and 3.5%. Compare that to this time last year – when rates were as high as 5.5% – it’s clear to see things are moving in an encouraging direction.
And the banks are at last looking to clients that would have previously be considered ‘unsafe’ or ‘risky’ to lend to, such as self-employed investors and non European nationals.
This is not to say that they are now taking risks. They are taking as little risk as they were last year, or the year before that with conservative loan-to-value mortgages.
This is due to a recovering economy and – even more importantly – a more stable property market.
A more stable property market, leads to greater mortgage lending which leads to higher house prices, which leads to an even more stable property market… creating a virtuous circle.
So, things are definitely looking up. Roll on the rest of the year!