Over 47,000 mortgage loans were granted in the second quarter, totalling approximately €7.7 billion, excluding refinancing, according to data from the Febelfin financial sector federation and the Professional Union of Credit (UPC). This signifies an annual credit increase of 5.8%.
While the first quarter saw a rise in credit applications year on year, the number of approved cases in the first three months of the year was reported as having fallen. However, the overall trend shows growth during the second quarter.
Credit applications (over 73,000), saw an increase of slightly over 4.5% between April and June 2024 compared with the same period in the previous year. The volume of these applications also grew, with a yearly increase of approximately 7.4%.
The volume of granted loans experienced an annual growth of 5.8% and the corresponding amount rose by approximately 4.8% – the first such increase since the first half of 2022, notes Febelfin.
Renovation loans and those for house purchases mainly contributed to this growth, whereas construction loans continue to underperform, down by 15%.
The average amount borrowed for house purchases grew during the second quarter, reaching approximately €196,000, as did that for construction, rising to €220,000. Finally, for purchase and renovation loans, the average credit sum was reported as having increased, averaging at €192,000.
Similar to the beginning of the year, over nine out of 10 borrowers (95.6%) in the second quarter chose a fixed interest rate, or a variable interest rate supplemented with an initial period of guaranteed rates of at least 10 years.
