Euribor and mortgages in Spain in 2026: the index is back above 3% and this is how it affects buyers

After a 2025 in which mortgage payments eased, 2026 has brought a change of trend. The 12-month Euribor, the index to which most variable-rate mortgages in Spain are linked, has risen in almost every month of the year; in September it went back above 3% and reached its highest level since 2024.

For those who already have a variable-rate mortgage, that means upward reviews. For those about to buy, it means somewhat more expensive loans at a time when house prices are at record highs. We go through the data and the practical points.

Euribor's climb in 2026

The index started the year at an average of 2.245% in January and hit its low for the year in February, at 2.221%. From March it began to rise steadily: it passed 2.7% in April, hovered around 2.8% between May and July and approached 3% in August. The Banco de España (Bank of Spain) officially set the August average at 2.954%, 0.840 points higher than a year earlier.

September sped up the rise. According to euribor.com.es's calculation, the monthly average closed at 3.247%, while other sources such as Bankinter put it at 3.238%; in both cases, around 3.24%. The official figure is published by the Banco de España at the start of each month. On 1 October the daily value already stood at 3.303%.

Month of 2026	12-month Euribor (monthly average)
January	2.245%
February	2.221%
March	2.565%
April	2.747%
May	2.804%
June	2.798%
July	2.855%
August	2.954%
September	3.247% (provisional)

Source: euribor.com.es (2026 history, consulted on 3 October 2026). The August figure matches the official value published by the Banco de España on 1 September 2026; the September figure is awaiting official confirmation.

Behind the move is the European Central Bank. After holding rates in July, its Governing Council decided on 10 September to raise the three key rates by 25 basis points, with effect from 16 September. The deposit facility stood at 2.50%, the main refinancing operations at 2.65% and the marginal lending facility at 2.90%. Euribor, which prices in expectations about official rates, had been anticipating that shift since the spring.

How much a variable-rate mortgage payment goes up

The impact depends on the outstanding amount, the term and the margin (diferencial). As a reference, the calculation published by Europa Press at the end of July, when Euribor stood at 2.855% compared with 2.079% in July 2025, estimated that a €150,000 mortgage over 30 years with a 0.99% margin would pay about €64.78 more a month at its annual review, around €777 more a year. With September's Euribor, the difference compared with a year ago is even greater.

The effect is stronger in the early years of the loan, when most of the payment is interest and the outstanding capital is higher.

How much new mortgages cost

Despite the rise in Euribor, the average rate on mortgages being signed remains around 3%. According to the mortgage statistics of the INE (National Statistics Institute) published on 28 September, the average interest rate on home loans registered in July 2026 was 3.01%, with an average term of 26 years.

Fixed rates remain the most common choice: 62.3% of home mortgages were taken out at a fixed rate, with an average interest rate of 3.03%, compared with 37.7% at a variable rate, averaging 2.97%. The land registrars agree with this picture: in the second quarter the average rate was 3.03% and 63.83% of new loans were signed at a fixed rate.

For context, the ECB's indicator of the cost of borrowing for house purchase across the euro area as a whole stood at 3.54% in July 2026, practically the same as in June.

Indicator	Figure	Source and period
Home mortgages	43,372 (-3.5% year on year)	INE, July 2026
Average amount	€180,785 (+10.9%)	INE, July 2026
Average interest rate	3.01%	INE, July 2026
Average term	26 years	INE, July 2026
Fixed-rate share / average rate	62.3% / 3.03%	INE, July 2026
Variable-rate share / average rate	37.7% / 2.97%	INE, July 2026
Average loan for home purchase	€188,785 (+7.3%)	Notaries, June 2026
Loan as a share of purchase price	72.3%	Notaries, June 2026

Sources: INE, Mortgage Statistics (July 2026, published on 28/09/2026); Consejo General del Notariado (General Council of Notaries) (June 2026) via idealista.

Fewer mortgages are being signed, but they are bigger

In July, 43,372 home mortgages were registered, 3.5% fewer than a year earlier. However, the average amount rose by 10.9% to €180,785, and the capital lent grew by 15.8% year on year. The message is clear: there are slightly fewer transactions, but each loan is larger because homes cost more. In the Comunidad de Madrid (Madrid region) the number of home mortgages fell by 5.2% year on year.

Notaries provide another relevant figure: in June 2026 only 53.7% of home purchases were financed with a mortgage. The rest were paid without a mortgage loan, which gives an idea of the weight of buyers with accumulated savings or with money from selling another home.

How much savings you need to buy

Lenders usually finance up to 80% of the lower of the purchase price and the valuation. The Comunidad de Madrid itself presents its Mi Primera Vivienda (My First Home) scheme as a way to go beyond that usual 80% threshold. In practice, the average reflected in notaries' data is even lower: loans amount to 72.3% of the price.

That means the buyer has to put in at least the remaining 20% and also pay the costs and taxes of the purchase, which for a resale home in the Comunidad de Madrid start with the 6% Impuesto de Transmisiones Patrimoniales (ITP, property transfer tax). For a €300,000 flat, the minimum deposit would be €60,000, plus about €18,000 of ITP and the costs of the notary, land registry, gestoría (administrative agency) and valuation. In practice, it is wise to have savings of between 25% and 30% of the price.

There are two public routes to reduce that deposit: the ICO guarantee (from Spain's state financial agency) for young people up to 35 and families with dependent children, extended until 31 December 2027, which covers up to 20% of the loan (25% if the home has an energy rating of D or better), and the Comunidad de Madrid's Mi Primera Vivienda scheme, which allows financing of up to 100% for buyers up to 40 who meet the requirements.

The FEIN and the ten-day reflection period

Law 5/2019 regulating real estate credit agreements (Ley 5/2019, reguladora de los contratos de crédito inmobiliario), in force since 16 June 2019, requires the bank to give the customer a set of documents at least ten calendar days before signing. The most important is the FEIN (Ficha Europea de Información Normalizada, the European Standardised Information Sheet), which sets out the terms of the offer and is binding for its period of validity.

Along with it, the bank must provide the FiAE (Ficha de Advertencias Estandarizadas, Standardised Warnings Sheet), which highlights the most sensitive clauses; for variable-rate loans, a document with scenarios showing how payments could change depending on the interest rate; a copy of the draft contract; and a breakdown of costs.

Before signing, the buyer must visit a notary of their choice, who checks that the time limits have been respected, answers questions and gives a short comprehension test. This preliminary record (acta previa) is free for the borrower. If these requirements are not met, the notary cannot authorise the mortgage deed.

Which costs the bank pays and which you pay

The same law divides the costs of the loan: the bank covers the gestoría, the notary's fees for the mortgage deed and registration in the Registro de la Propiedad (Land Registry), while the customer pays for the valuation and any copies of the deed they request. In addition, since Royal Decree-law 17/2018 (Real Decreto-ley 17/2018), in force since 10 November 2018, the mortgage's Actos Jurídicos Documentados tax (AJD, stamp duty) is paid by the lender.

What to compare between offers

With rates rising and small differences between average fixed and variable rates, the comparison needs to go beyond the nominal interest rate. These are the key points:

The TAE (APR) and the total cost of the loan shown in the FEIN, which include fees and linked products.
The nominal rate and, for variable or mixed-rate mortgages, the margin over Euribor and how often it is reviewed.
Discounts (bonificaciones): which products they require (salary paid into the account, insurance, cards) and how much they cost per year, so you know whether it is worth taking them out.
Early repayment fees: for variable rates, the law allows a maximum of 0.25% in the first three years or 0.15% in the first five; for fixed rates, up to 2% in the first ten years and 1.5% thereafter, always capped at the bank's financial loss.
The percentage of financing and the maximum term each lender offers.
The payment scenarios the bank must provide for variable-rate mortgages, to check whether you could cope with Euribor rises.

Choosing between fixed and variable is, at heart, deciding who bears the interest-rate risk. With Euribor above 3% and the ECB in a rate-rising phase, a fixed rate gives certainty about the payment; a variable rate may work out cheaper at first, but exposes the household to further upward reviews.

If you are looking for a home in Madrid, at Llavely you can plan your purchase with these figures in front of you before talking to the bank and, if you need a mortgage, we put you in touch, at no cost to you, with a mortgage broker. This article is for information only: each specific case should be reviewed with a professional.

Frequently asked questions

What is Euribor in October 2026?

The daily value of the 12-month Euribor stood at 3.303% on 1 October 2026. The September average closed at around 3.24%, compared with the official 2.954% for August, so mortgages reviewed in the coming months will go up.

Why is Euribor rising in 2026?

Because the market anticipated, and then saw confirmed, a shift in the ECB's monetary policy. On 10 September 2026 the central bank raised its official rates by 25 basis points, leaving the deposit facility at 2.50%, and Euribor reflects expectations about those rates.

What interest rate do mortgages have today?

According to the INE, the average rate on home mortgages registered in July 2026 was 3.01%. Fixed-rate mortgages were signed at an average of 3.03% and variable-rate ones at 2.97%, although each bank applies different terms depending on the customer's profile.

Is a fixed or variable mortgage better in 2026?

It depends on your tolerance of risk and your financial headroom. A fixed rate guarantees the same payment for the whole life of the loan, which is valuable when rates are rising; a variable rate may have a slightly lower starting rate, but the payment will change with each Euribor review. In July, 62.3% of mortgages were signed at a fixed rate.

How much money do I need saved to buy a home?

As a general rule, banks finance up to 80% of the lower of the price and the valuation, so you need a 20% deposit plus the purchase costs. In Madrid, for a resale home, that usually means between 25% and 30% of the price, since the standard ITP is 6%.

What is the FEIN?

It is the Ficha Europea de Información Normalizada (European Standardised Information Sheet), the document in which the bank sets out the terms of the mortgage it is offering you: amount, term, rate, APR, payments and costs. It is binding for its period of validity and must be given to you at least ten calendar days before signing, under Law 5/2019.

What is the preliminary visit to the notary for?

Within that ten-day period you must visit a notary of your choice, who checks that you have received all the documents, explains the clauses and makes sure you understand them. The record drawn up is free and, without it, the notary cannot authorise the mortgage.

Which mortgage costs does the bank pay?

Under Law 5/2019, the bank pays the gestoría, the notary for the loan deed and land registry registration, and since November 2018 also the mortgage AJD tax. The customer pays for the valuation and any copies of the deed they request.

How much can I be charged for early repayment?

For variable-rate mortgages, a maximum of 0.25% of the capital repaid during the first three years or 0.15% during the first five, depending on what was agreed. For fixed-rate mortgages, up to 2% in the first ten years and 1.5% thereafter, without exceeding the bank's financial loss.

Is there help to get a mortgage above 80%?

Yes. The ICO guarantee covers up to 20% of the loan (25% with an energy rating of D or better) for young people up to 35 and families with children, until the end of 2027. In Madrid, the Mi Primera Vivienda scheme allows financing of up to 100% for buyers up to 40 who meet the requirements.