The bank again grants mortgages for more than 80% of the appraised value

Published on July 11th 2018

Economic recovery reactivates the old business in Spain

The economic recovery has reactivated the mortgage business in Spain and the bank has resumed the commercial battle to attract customers and has even returned to grant loans for an amount that in some cases already exceeds 80% of the appraised value of the home.

According to the Spanish Mortgage Association (AHE), the ratio between the amount of the loan and the value of the property (LTV for its acronym in English) remains at 57.4%, but the truth is that it already exceeds 80% for about 14% of the loan portfolio.

This has set off the alarms of experts, who remember what happened less than a decade ago, when many financial institutions allowed their clients to borrow over 100% of the appraised value, so they warn of the need to be prudent and Do not fall into the same mistakes again.

The real estate bubble and the mortgage joy that lived in Spain in the early 2000s and its subsequent violent outbreak resulted in the hardest and longest crisis to be remembered, which took ahead to the boxes and forced Spain to ask a rescue for the financial sector in 2012.