The amount of bank loan delinquencies has soared over the last months and it’s at levels unseen in more than 8 years, according to the latest figures of the Bank of Spain. The underlying causes are related to the economic crisis we are in: high levels of unemployment, the rising inflation, and the Euribor (used as a reference index in most of the Spanish mortgages) having reached a historic peak, something which translates into higher monthly repayments. Also, the strengthening of the Euro against other currencies such as the Sterling Pound or the US Dollar makes it harder for these currency holders to meet their monthly mortgage repayments in Euros.

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