Evolution of mortgage credit in November 2020
8 January 2021 - 4 min Reading time
The number of credit applications decreased by approximately 12% in November 2020 compared to November 2019. However, the corresponding total amount of these applications was slightly more than 1% higher.
In November 2020, the number of granted loans decreased by approximately 13.5%. In terms of the amount, slightly more than 2% less credit was granted than in November 2019.
It should be noted that the figures for November 2019 were exceptionally high due to the imminent abolition of the Flemish housing bonus on January 1, 2020. So, all in all, the results were not bad.
These findings are based on the data from the mortgage credit barometer of the Professional Association of Credit (BVK).
In order to monitor the evolution of mortgage credit more rapidly, the Professional Association of Credit (BVK) has been compiling a mortgage credit barometer since the beginning of 2009. This barometer provides a monthly overview of the changes in the number and volume of newly granted and requested mortgage loans from the previous month, in comparison 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 by Febelfin.
Credit applications
The following graph illustrates the evolution of credit applications, in terms of both amount and number, for the past twelve months. The monthly figures are compared to those of the same month in the previous year.
In November 2020, the number of applications for a mortgage loan decreased by approximately 12% compared to November 2019. However, there was a slight increase in the amount, around 1%, compared to the previous year.
The decrease in the number of credit applications occurred in almost all areas: credits for the purchase of a home (-11%), for the construction of a home (-18.5%), and for home renovations (-32%). However, the number of applications for purchase with renovation (+23.5%) and external refinancing (+8%) did experience an increase.
Granted Mortgage Loans
The following graph illustrates the evolution of granted mortgage loans, in terms of both number and amount, for the past twelve months. The monthly figures are compared to those of the same month in the previous year.
In November 2020, the number of granted mortgage loan agreements was approximately 13.5% lower than in November 2019. The corresponding loan amount also decreased by slightly more than 2%.
When determining the decrease in the number of granted loans compared to the same month of the previous year, it should also be noted that lending had increased exceptionally from October 2019 to the end of 2019 due to the abolition of the housing bonus in Flanders.
The decrease in the number of granted loans occurred in almost all areas: loans for the purchase of a home (-10%), for the construction of a home (-32%), and for home renovations (-27%). Only the number of loans for purchase with renovation (+23%) and external refinancings (+3%) experienced an increase.
