As of August 24, 2026, the Spanish mortgage market is undergoing a notable shift. After a relatively stable start to the year, the Euribor rate has risen again, reaching levels unseen for almost two years.
On August 24, 2026, the daily Euribor 12-month rate was recorded at 2.993%, with the average for August forming around 2.94%. Just days earlier, the index surpassed the psychological threshold of 3% (3.003% on August 21), marking the highest point since September 2024.
This increase of over 0.7 percentage points in eight months is significantly impacting holders of variable and mixed mortgages in Spain.
For an average mortgage of 175,000–200,000 euros with a differential of 0.6–1%, the annual additional cost upon review could be 800–1,100 euros. For example, a 200,000 € mortgage over 30 years with a 0.60% differential sees a monthly payment increase of approximately 85 euros (around 1,020 euros annually) due to the rise in Euribor from last year’s levels.
The larger the remaining debt and the closer the annual review date, the greater the impact.
Despite the Euribor increase, competition among banks remains. The best fixed-rate offers for August 2026 start at:
- 2.55% TIN (Ibercaja — Hipoteca Vamos Fija)
- 2.65–2.75% TIN (Banca March, Banco Sabadell)
- 2.80–2.85% TIN (Openbank, CaixaBank, Cajamar)
It’s important to note that these are typically incentivized rates. To qualify, customers must meet certain conditions—such as having their salary deposited into an account with the bank, life and home insurance, and sometimes a credit card or savings products. Without meeting these conditions, the rate usually increases by 0.7–1 percentage point.
Advice for Variable Mortgage Holders
If your review is a few months away, it might be wise to calculate your new payment in advance and consider switching to a fixed rate (subrogation or refinancing).
For Prospective Buyers
Fixed rates remain relatively favorable. However, the window of opportunity is narrowing as markets anticipate potential further tightening of ECB policies.
Compare TIN and TAE
It’s crucial to compare not only the TIN but also the TAE, which reflects the true cost of the loan, including all mandatory products and fees.
