Spain sees surge in long‑term mortgages as short‑term loans disappear

Data from the Bank of Spain show that in January 2026 only one in five new mortgages was signed for a term shorter than ten years, while more than 78 % exceeded that horizon. The shift follows the cancellation of the Golden Visa programme in April 2025, which had previously attracted foreign buyers who often used short‑term financing. In 2025 the country recorded 501,073 mortgage contracts, a 17.75 % increase year‑on‑year, with an average loan amount of €172,540 and a median amortisation period of 25 years at an average interest rate of 2.87 %.

By July 2026 the Spanish mortgage market was characterised by stable interest rates: the Euribor closed June at 2.798 % and the ECB kept its deposit facility at 2.25 %, with the ECB President ruling out further hikes. Fixed‑rate offers were led by Ibercaja at a 2.55 % TIN (3.49 % TAE) for 25‑year loans, while the cheapest variable rate was Euribor + 0.49 % (3.67 % TAE) from Kutxabank. The overall environment provides greater certainty for borrowers, though the predominance of long‑term loans increases total interest costs over the life of the mortgage.