Evolution of mortgage credit in July 2020
3 September 2020 - 3 min Reading time
The number of credit applications increased by 9.5% in July 2020 compared to July 2019. The total amount corresponding to these applications was also nearly 19% higher.
In July 2020, the number of granted credits decreased by almost 16%. In terms of amount, approximately 13.5% less credit was granted than in July 2019.
These findings are based on the data from the mortgage credit barometer of the Professional Association of Credit (BVK).
These findings are based on the data from the mortgage credit barometer of the Professional Association of Credit (BVK).
To track the evolution of mortgage credit more quickly, the Professional Association of Credit (BVK) has been publishing a mortgage credit barometer since early 2009. This barometer provides a monthly overview of the evolution of the number and volume of newly granted and requested mortgage credits from the past month, compared to the same month of the previous year. The percentages mentioned relate to virtually the entirety of the BVK mortgage credit market. The underlying absolute figures are released on a quarterly basis through a press release from Febelfin.
Credit Applications
The following chart illustrates the evolution of credit applications in terms of amount and number over the past twelve months. Monthly figures are compared to those of the same month in the previous year.
In July 2020, the number of applications for a mortgage loan increased by 9.5% compared to July 2019. In terms of amount, there was also a nearly 19% increase compared to the previous year.
The increase in the number of credit applications occurred in almost all areas: loans for the purchase of a home (+6.6%), for home construction (+5.8%), for home renovations (+4.5%), and for purchases with renovations (+9.4%). The number of external refinancing applications also increased by 39.5%.
Granted Mortgage Credits
The following chart illustrates the evolution of granted mortgage credits in terms of number and amount over the past twelve months. Monthly figures are compared to those of the same month in the previous year.
In July 2020, the number of granted mortgage credit agreements was nearly 16% lower than in July 2019. The corresponding credit amount also decreased by approximately 13.5%.
The decrease in the number of granted credits occurred in almost all areas: credits for home purchases (-28.5%), for home construction (-19%), for purchases with renovations (-18.3%), and for home renovations (-1.5%). Only external refinancing credits increased (+19.5%).