Spanish Mortgage Market Trends in 2025 and Beyond

The Spanish mortgage market in 2025 has demonstrated a shift towards stability after a period of volatility. Rising lending activity and moderating interest rates have created improved conditions for borrowers, though challenges remain regarding housing access due to supply constraints and increasing prices. A clear preference for fixed-rate mortgages has emerged, surpassing mixed-rate options and leaving variable rates with a minimal market share.

The Rise of Fixed-Rate Mortgages

Throughout 2025, fixed-rate mortgages have become the dominant choice for homebuyers in Spain. According to data from iAhorro, fixed-rate mortgages accounted for 57.98% of transactions facilitated through their platform. This trend is driven by the security and predictability these mortgages offer, particularly in a fluctuating interest rate environment. Mixed-rate mortgages held a 40.88% market share, while variable-rate mortgages represented a mere 1.23% of operations.

Euribor and Interest Rate Landscape

As of June 2025, the European Central Bank (ECB) maintained rates at 2%, with the Euribor closing around 2.3%. Average interest rates on fixed mortgages through comparators like iAhorro were 2.07% NIR (Nominal Interest Rate) between October and December, compared to 2.82% in the general market, as reported by the INE (National Institute of Statistics). This difference can translate into significant savings over the life of the loan.

Mortgage Signing Volume and Regional Variations

Between January and October 2025, a total of 419,913 mortgages were signed for home purchases in Spain, an 18.37% increase compared to the same period in the previous year. This represents the highest volume recorded in the first ten months since 2010. Though, growth moderated in October 2025, with a year-on-year increase of only 0.58%, indicating a stabilization of the market.

Regional variations in mortgage activity were notable. Lugo led the increase with a 45.02% rise in operations, followed by León, Cantabria, La Rioja, and Zamora, all experiencing growth exceeding 40%. Soria was the only province to notice a decrease in mortgage activity.

Housing Prices and Loan Amounts

Despite increased financial stability, housing prices continue to exert pressure on the market. The average price of homes mortgaged through iAhorro users in 2025 was €237,995, a 5.31% increase from 2024. This reflects the ongoing imbalance between limited supply and high demand.

Territorial disparities in housing prices are widening. The Community of Madrid, Balearic Islands, and Catalonia exhibit significantly higher prices than the national average, while La Rioja, Murcia, Castilla y León, and Aragón have more contained, though rising, prices.

More than 38% of iAhorro users who secured a mortgage in the last quarter of 2025 required loans exceeding €200,000, and the number of loans surpassing €500,000 has similarly seen moderate growth.

The Digital Mortgage Holder Profile

The average age of the digital mortgage holder in 2025 was 38 years, slightly higher than in previous years, suggesting a delay in home purchases. Most mortgages were signed by individuals between 36 and 45 years vintage, a demographic typically associated with greater job stability and savings capacity. The average savings contributed by buyers reached €97,749, continuing an upward trend. This increase in required savings is partially attributed to rising property prices, leading many to buy as a couple (55.34% of iAhorro users) or postpone their purchase decision.

Mortgage Subrogation and Modifications

Mortgage subrogation (transferring a mortgage to another lender) and modifications are gaining traction. In 2025, 8.33% of operations through iAhorro involved mortgage changes, rising to nearly 16% in December alone. Adjusting interest rates, repayment periods, or switching from variable to fixed rates remains a viable strategy for saving money.

Looking Ahead to 2026

Looking forward to 2026, buyers will likely encounter a more selective and demanding mortgage market. Planning, saving, and comparing offers will be crucial for securing favorable terms. The market is expected to remain focused on medium to higher-level loans, with lenders increasingly scrutinizing applicant profiles.

Sources:

• Banco de España – EURIBOR
• IMS Mortgages – Spanish Mortgage Market 2025
• immoabroad.com – Spanish Mortgage Rates in 2025
• Spanish Property Insight – Spanish Mortgage Market