Spanish mortgage forecast 2026 — trends, popular mortgage types, approval outlook, and expert tips to finance your home amid rising prices and tighter bank criteria.
Spain’s housing market picked up strong momentum in 2025, and that momentum will shape mortgage choices and approval conditions in 2026. With mortgage signings up and first-quarter purchases hitting levels not seen since 2009, buyers should expect a competitive environment — but also clear opportunities if they prepare. Here’s a practical forecast to help you navigate mortgage options in Spain next year.
Market snapshot: what happened in 2025
Official data from Spain’s National Statistics Institute (INE) and the Housing and Land Observatory show a robust rebound. Mortgage signings rose 12.2% from September 2024, and the first quarter of 2025 recorded 34,416 home purchases — an 11.5% year-over-year increase and the highest quarterly total since 2009. Market commentators such as Bayteca expect this upward trend to continue into 2026, driven by rising rents and a persistent housing shortage; Kelisto anticipates continued growth but at a more moderate pace.
Mortgage trends to watch in 2026
• Fixed and mixed-rate mortgages: Stability remains king. Fixed-rate mortgages continue to appeal for predictable monthly payments. Mixed-rate products — fixed for an initial period (typically 5–10 years) before switching to a variable rate — are growing in popularity as buyers seek a balance between security and potential savings. Mixed mortgages now represent nearly 10% of the market, up from roughly 3–4% previously.
• Variable-rate mortgages: These could regain some interest if the Euribor (Euro Interbank Offered Rate) falls, but they are not expected to dominate the market again soon.
• Approval criteria: Lenders may become more selective as prices rise and loan sizes increase. Bayteca warns that higher property values could result in more application rejections. However, applicants with stable income and low existing debt should still be in a strong position.Key considerations when applying for a mortgage in 2026
• Affordability: Grupo Caja Rural recommends allocating no more than 30% of your monthly income to mortgage payments. Stick to conservative affordability calculations to avoid being overstretched.
• Deposit: Expect to provide 20–30% of the property value as a down payment, especially for non-resident buyers or higher-risk profiles.
• Documentation: Prepare proof of income, recent bank statements, tax returns, and valid ID to speed up processing and strengthen your application.
• Shop around: Compare rates, arrangement fees, and early repayment conditions from multiple lenders rather than accepting the first offer.
• Budget for extra costs: Remember to factor in property registration fees, transfer taxes, home insurance, and possible notary fees when calculating the total cost of buying.Expert tips to position yourself competitively
• Build creditworthiness: Maintain a clean credit record and stable employment history.
• Reduce debt ahead of applying: Lowering credit-card and personal-loan balances improves your debt-to-income ratio.
• Consider professional guidance: A mortgage broker or financial advisor familiar with the Spanish market can help you find competitive offers and navigate documentation requirements.Looking ahead
Spain’s property market looks attractive but competitive in 2026. Careful financial planning, realistic affordability checks, and early preparation of documents will give you the best chance of securing favorable financing. Stay informed about Euribor movements and lender policies, and consult a mortgage professional if you need tailored advice.
