The number of new mortgages in Spain fell -22% in 2009 to 653,173 loans, according to the National Institute of Statistics (INE), after a fall of -32% in 2008.

The total value was also down by -34% in 2009 to €76.8bn having dropped by -37% in 2008 according to the institute. Last year was the third year in a row that new mortgage lending and their total value fell and are the lowest figures since 2003 when the INE started publishing data.

Peak to trough, new mortgage lending is down -51% by volume and -59% by value, compared to 2006 when the market was at its peak. That is a massive decline in the amount of money which is being used to potentially purchase property.

The average value of a new mortgage in 2009 was €117,688, down -16% on 2008 which indicates that borrowers are taking out smaller mortgages because Spanish property prices are falling, so borrowers don’t need such big mortgages as previously.