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The bank gives the order to go for all in granting mortgages

The news is excellent, and it is recognized in the sector that production is above what was initially expected. The best forecasts have been beaten, and the general feeling is that the bank has risen to the occasion. On the one hand, it has managed to make the necessary sacrifice in prices so that hiring continues to grow without ups and downs; on the other, it has reached the economic reactivation phase with very clear ideas.

In these first weeks of the month of July the watchword is to put even one more speed. Not so much in official prices, which are already very tight – the average price of mortgages fell in May to historical lows of 2.31% – as in the commercial effort to reach more and more segments of the population. There are a trillion euros of families in the hands of the banks, and in view of the fact that the rates are going to continue at negative levels, movement is expected.

Home purchase

Movement towards the purchase of housing as an investment, and also to change location within large cities. The objective is to attract potential high-income clients who need a mortgage to complete the purchase of a house, but who have sufficient financial capacity not to become a potential defaulter. In these cases the bank is willing to make a great effort on price.

“The Covid-19 began a year and a half ago and there are many people who have already changed houses looking for safer areas outside the center of large cities. You cannot expect as much activity as that which has been registered in the second half of 2020 and the first one in 2021. But there is still an important pool of people willing to buy or invest in top-quality assets taking advantage of the winds of economic recovery, “they point out in industry sources.

At this point, the bank is going to put all the meat on the spit to attract new customers, including dissatisfied from other entities. The battle is fought in the double sense of new mortgages on the one hand and subrogations on the other. And in both, the entities fight for the best clients in the market, especially in view of the fact that the rest of the credit activity continues to show signs of weakness that will not be corrected in the short and medium term.

In May, the amount of the bank’s new mortgage operations amounted to just over 4,500 million euros. It is the second highest figure of 2021 in which home loans have become the lifeline of the bank’s credit business. In the sector they are clear that, with the country still emerging from the great crisis caused by Covid-19, it is not yet the time to bet without a doubt on the consumer credit business.

This remains at very discreet levels so far this year, with figures that project for 2021 a volume very similar to the slightly more than 25,000 million euros of last year, when there was a great collapse of both supply and the demand. And loans to companies do not take off either. The slightly more than 23,000 granted in May are well below the figures for March and April, within an also discreet year of recruitment.

With these cards on the table, the mortgage business is the great hope of a financial sector that is fulfilling its growth in the first half of the year but cannot be complacent. “More wood” is the order that resonates in the command bridges of most entities, which are fighting a battle both to win new customers and to retain the best they already have in their ranks.

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