Home loans soar to €900 million in July

Despite tighter controls on the Bank of Portugal home loans skyrocketed to €900 million in July.

The same month the BdP issued recommendations to banks and credit concession agencies to limit mortgage and credit concession to families and individuals.

In July there was a slight reduction in demand for home loans compared to the previous month but the amount was over the €900 million level at €919 million.

According to figures released by the Bank of Portugal this week, financial institutions granted €919 million in home loans in July. The loans represent a reduction by €71 million compared to the  €990 million recorded in June – the highest amount for June in eight years and the second highest amount for the year.

This development led to a new mortgage stock increase in July while the balance of bank mortgages reached €92,857 million in July, the maximum since March.

Regarding other loans such as consumer credit, financial institutions lent €387 million, a reduction of €32 million compared to the €419 million granted in June and an increase of 17.6% when compared to credit loaned last year for the same period.

Loans destined for other ends were the only category to have fallen this year. In July €143 million in credit was granted, a fall of 24% on July 2017 when €162 million was loaned.

For all three segments (home loans, consumer credit and loans destined for other ends), Portuguese banks lent €1.4Bn to families in July. (Down €106 million on the €1.5Bn lent in June but up €276 million when compared to the same month in 2017.)