Spanish Property and Spanish Mortgages

My director sent this to me and i thought i would share - just a few comments on the current state of the Spanish Property and Spanish Mortgages and various funding issues.

Spain’s debt-laden households are feeling the pinch of rising interbank interest rates, particularly acute because the overwhelming majority have variable-rate mortgages. But while the UK has barely expanded its housing stock during the past decade, Spain has gone on a construction spree, recently building around 800,000 new homes a year.

Analysts believe that there is only demand for around 500,000 of those, leading to a glut of supply in many areas. However, Spain is viewed as being particularly at risk from a downturn.

Like Britain, property prices have soared, doubling between 2001 and the end of 2006 and rising by nearly 60 percent in the past two years alone, according to Halifax Spain figures.