New residential mortgage lending increased in April by 22%, a big rebound compared to March, when the growth rate of just 2% was the result of seasonality. The average new loan in April was €133,456, down 3.3% compared to last year. 47.3% of purchases involved mortgage financing, with an average LTV of 75.2%, all according to data from the Association of Spanish Notaries.
Whilst new mortgage lending keeps growing, there will be more money chasing properties in Spain. In hot markets like Madrid, Barcelona, and the Balearics, this will put upward pressure on prices.
