The fall in Spanish home sales accelerated in the final quarter of 2008, a report showed on Tuesday, reflecting a collapsing property sector that has helped tip the fourth-largest euro zone economy into recession.
Some 113,274 homes were bought and sold in the fourth quarter, down 13.5 percent from 130,884 in the third, Spain's College of Registrars said.
The drop was sharper than a 8.6 percent fall between the second and third quarters.
For the year, 561,420 sales were registered, down 28.8 percent from 2007.
The average value of Spanish mortgages declined for a fourth consecutive quarter, falling 1.84 percent year on year to 136,148 euros ($174,400), the college said.
Average mortgage values fell 6 percent in 2008, it said.
Figures from Spain's National Statistics Institute published last month showed mortgages in Spain fell 23 percent in November compared to a year earlier, reflecting both weaker demand and tighter bank lending.
Most analysts say Spanish house prices will fall by up to 30 percent from their highs, though some see greater declines as possible as the end of a decade-long residential construction boom coincides with credit market turmoil. Add into this the cost of buying euros and the Spanish property market seems to be in some pain.
Pounds to Euros exchange rate = 1.1128
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Showing posts with label spanish equity release. Show all posts
Showing posts with label spanish equity release. Show all posts
Monday, March 2, 2009
Thursday, February 19, 2009
One in five subprime borrowers struggling with mortgage repayments
Mortgages Update
Five per cent – or around 37,000 borrowers – expect to have their homes repossessed within the next six months, while over a third of respondents or 260,000 householders said they would be unable to fully meet mortgage payments if their income fell significantly.
If their fears of repossession were borne out, it would represent a sharp rise in the rate of repossessions since last year.
The Council of Mortgage Lenders is expected to announce on Friday that a total of 45,000 homes were taken back by lenders last year. But 37,000 being repossessed in six months is equivalent to an annual rate of 74,000, and Shelter's survey covered only subprime borrowers.
"We believe the situation will get far worse, with thousands of subprime borrowers looking for new mortgage deals when their fixed-rate ends later this year," said Shelter.
"With subprime standard variable rates at 10.5pc and fixed rates of 9.5pc, thousands could be hit with a huge monthly payment shock. There are also only five subprime lenders in the market, compared with 22 a year ago."
If these borrowers have to pay more each month on a new mortgage deal, their finances will be stretched further, potentially bringing about repossession.
Shelter found that 22pc of respondents, or around 160,000 households, admitted to struggling or falling behind with their monthly mortgage payments. Sub-prime borrowers were taking drastic measures to pay their mortgage, including borrowing from friends and family, using credit cards and taking out loans, the charity added.
Adam Sampson, Shelter's chief executive, described the figures as "terrifying". He added: "Home owners who borrowed in good faith during the boom now finding themselves among the most vulnerable to repossession.
"Now for the first time we can reveal the true extent of the credit crunch and the destruction sub prime is yet to have on the housing market."
Full story visit www.telegraph.co.uk
Pounds to US Dollars = 1.4385
Pounds to Euros = 1.1315
Euro to Pounds = 0.8823
Pounds to Australian Dollars = 2.2170
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Contact IMS Foreign Exchange + 44 207 183 2790
Five per cent – or around 37,000 borrowers – expect to have their homes repossessed within the next six months, while over a third of respondents or 260,000 householders said they would be unable to fully meet mortgage payments if their income fell significantly.
If their fears of repossession were borne out, it would represent a sharp rise in the rate of repossessions since last year.
The Council of Mortgage Lenders is expected to announce on Friday that a total of 45,000 homes were taken back by lenders last year. But 37,000 being repossessed in six months is equivalent to an annual rate of 74,000, and Shelter's survey covered only subprime borrowers.
"We believe the situation will get far worse, with thousands of subprime borrowers looking for new mortgage deals when their fixed-rate ends later this year," said Shelter.
"With subprime standard variable rates at 10.5pc and fixed rates of 9.5pc, thousands could be hit with a huge monthly payment shock. There are also only five subprime lenders in the market, compared with 22 a year ago."
If these borrowers have to pay more each month on a new mortgage deal, their finances will be stretched further, potentially bringing about repossession.
Shelter found that 22pc of respondents, or around 160,000 households, admitted to struggling or falling behind with their monthly mortgage payments. Sub-prime borrowers were taking drastic measures to pay their mortgage, including borrowing from friends and family, using credit cards and taking out loans, the charity added.
Adam Sampson, Shelter's chief executive, described the figures as "terrifying". He added: "Home owners who borrowed in good faith during the boom now finding themselves among the most vulnerable to repossession.
"Now for the first time we can reveal the true extent of the credit crunch and the destruction sub prime is yet to have on the housing market."
Full story visit www.telegraph.co.uk
Pounds to US Dollars = 1.4385
Pounds to Euros = 1.1315
Euro to Pounds = 0.8823
Pounds to Australian Dollars = 2.2170
Bye For Now
IMS Foreign Exchange
Foreign Exchange Trading
Forex Trading Reports - Click for a free trial
Buying Euros? Buy Euros at the best euro Rates!
Buying Dollars? Buy US Dollars at the Best Dollar Rates!
Buying Australian Dollars? Buy Australian Dollars at the Best Australian Dollar Rates!
Contact IMS Foreign Exchange + 44 207 183 2790
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