(November 28th SUR IN ENGLISH )

After several warnings from national and international financial institutions that the “property bubble” is about to burst, Spanish banks and mortgage financing entities have decided to put brake on.

After having allowed their branch managers a lot of leeway with mortgage applications in the past, they now say each case will be studied more stringently, especially since their attitude that “more mortgages the merrier” has begun to turn against them as the number of clients who cannot make their repayments grows.

The Adicae bank clients´ association says this isn’t the fault of the banks but of the clients who, it says, take on mortgage they’re not sure they can pay.

In the province of Malaga alone, mortgage applications to the tune of 2,300 million euros were made during the first six months of this year.
But despite the indebtedness involved, the demand for flats and houses has shown no sign of abating so far.