Why is it so difficult to get mortgage in summer?

Such a seemingly insignificant factor, like the time of year when an application for a mortgage loan is submitted, can affect both the bank's decision-making and its conditions. In this sense, summer is the least suitable time of the year to apply for a mortgage from a financial institution.

In 2019, compared to 48,337 properties transferred in Spain in July and 43,356 in October, in August and September (when purchases confirmed in previous months were made), the number of houses transferred was 35,723 and 38,279, respectively according to the National Institute of Statistics (INE).

Summer is the time of year that many buyers use to sell or buy their house, taking advantage of the large amount of time available during the vacation period. However, the execution of the sale or purchase of real estate can be especially difficult this season, as it often happens that employees of appraisal companies, real estate agencies, banks and notaries are also on vacation, which means that the transaction is postponed until a later date.

This summer pause on the part of those involved in buying and selling contrasts with the strong interest of buyers and sellers in the sale and purchase of real estate, especially in coastal areas, where foreign demand is also prevalent to take advantage of their holidays in Spain to buy real estate. The consequence of this is a lot of competition in the market during the summer months, especially on the coast, which entails the usual price increases, which does not make summer the best season to buy a house in certain places.