The balance of doubtful mortgage loans or mortgage arrears reached a new historical maximum at the end of the third quarter, with 29,180 million euros, equivalent to 5.07% of the 574,919 million euros in loans for the purchase of housing in this period, according to data from the Bank of Spain.

In this way, the mortgage default, credits in which housing is the guarantee of payment and that, therefore, are likely to lead to foreclosures or evictions, has grown slightly in the last three months, since in the second quarter stood at 4.9%.

The balance of delinquent mortgages

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In absolute terms, the balance of delinquent mortgages has grown somewhat more than 2% in three months compared to 28,596 million with which it closed the second quarter, while the total mortgage balance has decreased only 1.4%.

If another type of home purchase loan is also taken into account, in which it is not set as a guarantee of payment, and which include personal loans or those of lesser amount to pay a part of the purchase, the default amounts to 30,735 million euros, up to a rate of 5.24%.

The mortgage delinquency ratio remained below 1% until March 2008, before the beginning of the crisis. As of June of that year, it began to register a greater rebound, as a result of the resurgence of the economic crisis, and at the end of that same year, it already exceeded 2%.

THE TIME OF THE PROMOTERS SCALE TO 33.7%

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On the other hand, delinquent loans from financial institutions granted for real estate activities rebounded again in the third quarter, with an increase of 6.99% over the second, to 65,670 million euros, after the decline experienced in the first months 2013, in parallel to the transfer of many toxic assets to Sareb.

In addition, the volume of credit granted to promoters has fallen in the third quarter to 195,083 million euros. Consequently, delinquency in the promoter loan has increased from 31.1% at the end of June to 33.7%.

Which amounts to 19,573 million euros

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If to these magnitudes the delinquent credit of the builders is added, which amounts to 19,573 million euros, with a delinquency rate of 31.1%, the result is an amount of 85,243 million euros. In this way, the joint default of developers and builders would reach 33%.

While the drought of the credit for the purchase of houses persists, the delay of the promoters has multiplied by more than three since 2008, year in which it reached 19,416 million euros, initiating an ascending progression that has been interrupted only in the last quarter of 2012 and the first of 2013.

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