MORTGAGE loans in Andalucia have plunged by almost almost 10% in June, it has emerged.
The month of June had seen only 5,966 home loan applications signed, with the average value also 18% down at €100,431.
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Real estate agents have blamed the 9.7% drop on the reluctance of banks to grant mortgages.
“The banks look at the mortgage loan seekers with a magnifying glass,” said Spain’s real estate regulation body API.
Banks have only granted 70% or 80% of the amount of the price of the house, forcing buyers to stump up the remaining 30% in cash, according to the group.
They added: “It is difficult to have that money saved and when buyers get it through family loans, the bank does not grant the loan if the monthly fee exceeds 30% of the payroll of the applicant.”
The regions of Andalucia where the greatest falls have been recorded were in Cordoba, Sevilla and Malaga.
In Cordoba, mortgages on homes decreased from 732 in May to only 475 in June, which represents a 36% drop.
In Sevilla and Malaga, 1,183 and 1,498 home mortgages were signed, 15% and 11% less than the previous month respectively.
The only areas to see an upturn in mortgages were Huelva and Jaen but they saw only modest gains of 464 and 271 respectively.