Mortgage Interest Rates in Spain in 2026: How Have They Evolved?

Mortgage interest rates in Spain have changed direction during the first half of 2026. After beginning the year at relatively stable levels, increasing inflation risks and renewed economic uncertainty pushed the European Central Bank to raise its key interest rates in June.

As a result, Euribor rates and the cost of new mortgages in Spain have gradually increased. However, the market remains competitive, particularly for financially strong applicants and international buyers with stable income, sufficient savings and a well-prepared mortgage application.

In this article, Mortgage in Spain.es explains how mortgage rates have evolved in 2026, what has caused the recent changes and what foreign buyers should consider before applying for a mortgage in Spain.

Mortgage rates in Spain at the beginning of 2026

The Spanish mortgage market entered 2026 in a relatively favourable position for borrowers.

During the previous period, inflation had moderated and financial markets expected European interest rates to remain stable or potentially decrease. This allowed Spanish banks to continue offering competitive fixed, variable and mixed-rate mortgages.

In January 2026, the official average interest rate on Spanish residential mortgage loans with terms exceeding three years stood at approximately 2.76%. By February, it had increased slightly to around 2.82%, according to Banco de España data.

The 12-month Euribor, the main reference rate used for variable mortgages in Spain, stood at:

• 2.245% in January 2026
• 2.221% in February 2026

These figures initially suggested that mortgage conditions could remain relatively stable during the year.

However, economic expectations began to change during March.

Why did interest-rate expectations change in 2026?

The main factor affecting European interest rates in 2026 has been renewed inflationary pressure.

Geopolitical instability, higher energy costs and uncertainty surrounding international trade created concerns that inflation could remain above the European Central Bank’s medium-term target.

At its meeting on 19 March 2026, the ECB kept its three key interest rates unchanged. Nevertheless, it warned that geopolitical developments had significantly increased uncertainty, creating both upward risks for inflation and downward risks for economic growth.

Financial markets reacted before the ECB changed its official rates. Euribor began to rise because it reflects not only current central-bank policy but also expectations regarding future borrowing costs.

The 12-month Euribor increased from 2.221% in February to:

• 2.565% in March
• 2.747% in April
• 2.804% in May

This represented a noticeable change from the more optimistic expectations seen at the beginning of the year.

The ECB raised interest rates in June 2026

On 11 June 2026, the European Central Bank decided to raise its three key interest rates by 25 basis points.

The ECB explained that the decision was intended to ensure that inflation returned sustainably to its 2% medium-term target.

This increase was important for the mortgage market because ECB policy rates influence the cost at which European banks obtain funding.

When bank funding becomes more expensive, lenders may respond by:

• Increasing fixed mortgage rates
• Raising the margins applied to variable mortgages
• Adjusting mixed-rate mortgage offers
• Applying stricter affordability criteria
• Reserving their best conditions for lower-risk borrowers

The effect is not always immediate or identical across all banks. Each lender follows its own commercial strategy, risk policy and funding requirements.

This is why comparing mortgage offers has become especially important in 2026.

How has Euribor evolved in 2026?

The evolution of the 12-month Euribor provides a useful overview of the change in the European interest-rate environment.

Month12-month Euribor January 2026 2.245% February 2026 2.221%March 2026 2.565% April 2026 2.747% May 2026 2.804% June 2026 2.798%

Official Banco de España data show that Euribor rose sharply between February and May before stabilising in June.

The June average of 2.798% ended three consecutive months of increases, although it remained significantly higher than at the beginning of the year.

During the first half of July, daily Euribor readings continued to fluctuate around the high-2% range. As July was not yet complete at the time of publication, its final monthly average could still change.

Euribor is officially administered by the European Money Markets Institute, which is the official source responsible for calculating and publishing the benchmark.

Have mortgage rates in Spain increased?

Yes, average borrowing costs have increased moderately during 2026.

According to Banco de España, the official average rate for mortgage loans exceeding three years for the purchase of a home evolved as follows:

MonthAverage mortgage rate January 2026 2.762% February 2026 2.819% March 2026 2.840% April 2026 2.882% May 2026 2.986%

The figures show a gradual rise rather than a sudden increase.

It is also important to understand that an official market average is not the same as the rate that every applicant will receive.

The final conditions offered by a Spanish bank depend on factors such as:

• The applicant’s country of residence
• Employment or business income
• Income currency
• Existing loans and monthly commitments
• Credit history
• Purchase price and property valuation
• Loan-to-value ratio
• Mortgage amount
• Applicant age
• Requested mortgage term
• Overall financial profile

Two buyers purchasing properties at the same price may therefore receive very different mortgage offers.

What does this mean for variable-rate mortgages?

Variable mortgages in Spain are normally calculated using Euribor plus a fixed bank margin.

For example, a mortgage may be priced as:

12-month Euribor + the lender’s agreed margin

When Euribor rises, the interest rate applied at the next mortgage review normally increases. This can lead to a higher monthly payment.

However, the impact depends on:

• The outstanding mortgage balance
• The remaining term
• The lender’s margin
• The review date
• Whether the mortgage is reviewed every six or twelve months

Borrowers should not assume that a variable mortgage is automatically the cheapest option simply because its initial rate is lower.

A variable mortgage transfers part of the future interest-rate risk to the borrower. It may be suitable for applicants who can absorb possible payment increases, but it must be assessed carefully.

What has happened to fixed-rate mortgages?

Fixed mortgage rates have also faced upward pressure in 2026.

Fixed mortgages are not directly calculated using Euribor. Their pricing is influenced by longer-term market expectations, interest-rate swaps, the bank’s funding costs and the lender’s commercial strategy.

This means fixed rates can increase before an ECB decision if financial markets anticipate higher future rates.

A fixed mortgage offers predictable monthly payments throughout the agreed fixed-rate period. This can be valuable for international buyers who prefer certainty when planning their expenses in Spain.

Nevertheless, the lowest advertised rate is not always the best overall mortgage. Applicants should also review:

• Arrangement or opening fees
• Early repayment conditions
• Compulsory or optional insurance
• Linked bank products
• Account-maintenance requirements
• Currency risk
• Total interest payable
• Flexibility to sell or refinance the property

The most suitable mortgage is the one that provides the best combination of cost, security and flexibility for the buyer’s circumstances.

Are mixed mortgages becoming more relevant?

Mixed-rate mortgages have remained an important part of the Spanish market in 2026.

A mixed mortgage normally provides a fixed interest rate for an initial period, followed by a variable rate linked to Euribor.

This structure may appeal to buyers who want predictable payments during the first years of ownership but are willing to accept variable-rate exposure later.

However, applicants should not focus only on the initial fixed period. They must also understand:

• How long the fixed period lasts
• The rate applied during that period
• The Euribor margin applied afterwards
• Whether early repayment charges apply
• The expected mortgage balance when the variable period begins

A mixed mortgage can be attractive, but only when its full long-term structure is properly analysed.

Are mortgages still available for non-residents in 2026?

Yes. Spanish banks continue to provide mortgages to non-resident buyers.

As a general market guideline, non-residents may be able to borrow up to approximately 70% of the lower of the purchase price or the bank valuation. The exact percentage depends on the bank, the property and the applicant’s financial profile.

Buyers must normally contribute the remaining purchase price from their own funds and also have sufficient savings to cover taxes and purchase expenses.

These costs vary depending on the region, property type and transaction, but they are not usually included in the mortgage.

In 2026, banks remain particularly interested in applicants with:

• Stable and provable income
• A moderate debt-to-income ratio
• Sufficient savings
• A clear source of funds
• Good credit history
• Complete financial documentation
• A property acceptable to the lender

A professionally prepared application can make a substantial difference, especially for self-employed applicants, business owners, applicants receiving dividends or buyers earning income in a currency other than euros.

Should buyers wait for interest rates to fall?

There is no guarantee that waiting will produce a better result.

Mortgage rates may decrease if inflation falls and the ECB changes its monetary policy. However, they could also remain stable or rise further if inflationary pressures continue.

In addition, interest rates are only one part of a property purchase.

A buyer who delays may face:

• Higher property prices
• Reduced availability in the chosen area
• Changes in exchange rates
• Different lending criteria
• Increased competition for suitable properties
• Changes in personal income or financial circumstances

Rather than attempting to predict the lowest possible interest rate, buyers should determine whether the purchase and mortgage are affordable under realistic conditions.

A mortgage should remain manageable even if interest rates, expenses or currency values move unfavourably.

How can international buyers obtain better mortgage conditions?

The strongest mortgage applications are normally those that are prepared before a property reservation or purchase contract is signed.

International buyers should establish:

1. How much they can realistically borrow
2. How much cash they will need
3. Which banks accept their income profile
4. Which documents must be provided
5. Whether their income currency creates restrictions
6. Which mortgage structure is most appropriate
7. Whether the property is likely to be acceptable to the bank

Submitting an application to an unsuitable lender can result in delays, unnecessary document requests or rejection.

Mortgage conditions can also differ considerably between banks. One bank may view an applicant as complex, while another may have experience with the same nationality, employment structure or income type.

How Mortgage in Spain.es helps international buyers

Mortgage in Spain.es is a mortgage broker specialising in helping non-residents and international buyers obtain property finance in Spain.

We analyse each client’s financial circumstances and identify the lenders most suited to their profile.

Our service includes:

• Initial mortgage eligibility assessment
• Calculation of the potential mortgage amount
• Estimation of the savings required
• Review of income and financial documentation
• Presentation of the application to suitable Spanish banks
• Comparison of mortgage offers
• Assistance with the property valuation
• Support during the FEIN and transparency process
• Coordination through to mortgage completion

We regularly work with salaried employees, self-employed professionals, company directors, business owners, investors and applicants with income from several sources.

Our advice is provided from Spain by specialists familiar with the Spanish mortgage process and the requirements that apply to international buyers.

Mortgage in Spain.es is registered as a real-estate credit intermediary with Banco de España under registration number D969.

Is 2026 still a good year to obtain a mortgage in Spain?

Despite the increase in Euribor and the ECB rate rise, mortgage financing remains available in Spain.

The market is more selective than it appeared at the beginning of the year, but banks continue to compete for financially strong applications.

The key issue is not simply whether interest rates have increased. It is whether the applicant can obtain the right mortgage from the right bank, with conditions that remain affordable over the long term.

For international buyers, specialist advice is particularly valuable because lending criteria vary considerably between Spanish banks.

Find out how much mortgage you could obtain in Spain

Are you planning to buy a property in Spain in 2026?

Mortgage in Spain.es can assess your circumstances and explain:

• How much you may be able to borrow
• How much deposit and savings you will need
• Which mortgage structure may suit you
• Which Spanish banks may consider your application
• What documents you should prepare

Contact our mortgage specialists before committing to a property and receive a personalised assessment of your financing options.

This article is provided for general information only and reflects market information available on 14 July 2026. Interest rates, lending policies and mortgage conditions can change. Any mortgage approval is subject to the lender’s analysis, property valuation and final underwriting decision. This content does not constitute a binding credit offer.