The health crisis weighs on mortgage activity

The health crisis weighs on mortgage activity

The number of mortgage loan applications fell by almost a quarter in the second quarter. The granting of loans has also been considerably slowed down.

A number of credit requests experienced a 23% decrease in the second quarter of 2020, compared to the same quarter of the previous year. the amount corresponding credits also experienced a down 16%.

77,000 credit applications were introduced for a total amount of just over 12.3 billion euros. April and May saw a sharp decline of 40% and 32% respectively. In June, however, credit professionals recorded an increase of 24% compared to June of last year.

In the second quarter of 2020, almost 53,500 mortgage credit agreements have been concluded for a total amount of approximately 7.5 billion euros. This represents a 23.5% drop compared to the second quarter of last year. the amount of loans granted is 19% lower to that of the same period of the previous year. This is what emerges from the statistics relating to mortgage loans published today by the Professional Credit Union (UPC).

Construction loans, the biggest drop

By destination, the credits granted decreased as follows:

  • Construction loans: – 29.4%, or nearly 2,700 contracts less, for an average amount of 194,000 euros.
  • Buying a home: -27% (-9,942 contracts) for an average amount of 175,000 euros.
  • Purchase with transformation housing: -12% (-364 contracts) for an average amount of 199,000 euros.
  • Renovation: -15.3% (-2,374 )
  • Other destinations (garage, building plots…): -19.2% (-992).

In the second quarter of 2020, around 9 out of 10 borrowers again opted for a fixed interest rate or a variable interest rate with an initial period of fixed minimum rates.

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