Mortgages in Spain in 2026: Euribor, monthly payments, the hipoteca joven and reverse mortgages

• 12-month Euribor: 3.239% in October 2026 according to the Bank of Spain, 1.052 points higher than a year before.
• A €100,000 mortgage over 25 years costs €448.62 a month at 2.5% and €500.62 at 3.5%.
• Hipoteca joven: the ICO guarantees up to 20% of the loan (25% with an energy certificate of D or better) for buyers under 36 and families with children, until December 31, 2027.
• Hipoteca inversa: for people aged 65 or over, dependent or with a disability of at least 33%; the debt is only claimed on death.

The figures in this guide come from the Bank of Spain, the ICO and the BOE, Spain's official gazette, and are dated. Each loan's terms, the margin, fees and linked products, depend on the bank: the European Standardised Information Sheet (FEIN in Spanish) handed over before signing is the document to compare them with.

How a mortgage works in Spain

• Fixed rate: the payment never changes for the life of the loan; it protects against Euribor rises, in exchange for an often higher starting rate.
• Variable rate: the rate is an index, almost always 12-month Euribor, plus a fixed margin; the payment is reviewed every six or twelve months.
• Mixed rate: fixed for the first years, then variable.

Banks usually lend up to 80% of the appraised value of a main home, so the buyer brings the rest plus the purchase taxes. Since the 2019 mortgage credit law (Ley 5/2019), the bank pays the notary, land registry and processing fees and the stamp duty on the mortgage; the borrower pays the valuation.

Euribor in November 2026

According to the Bank of Spain, 12-month Euribor, the main benchmark for variable mortgages, stood at 3.239% in October 2026, against 3.247% in September and 1.052 points higher than in October 2025. A variable mortgage reviewed now resets on a higher index than a year ago.

Calculating a mortgage payment

The monthly payment on a constant-rate loan uses the standard amortisation formula: principal × r / (1 − (1 + r)⁻ⁿ), where r is the annual rate divided by 12 and n the number of payments. The mortgage calculator does the maths and shows the amortisation schedule.

A longer term lowers the payment but raises the total cost: at 3%, interest comes to about €42,300 over 25 years and €51,800 over 30 years. On a variable loan, €150,000 over 25 years with a 0.60-point margin costs €778.48 a month with October 2026 Euribor, against €694.81 with October 2025's: about €84 more a month at the review.

Hipoteca joven: the ICO guarantee for a first home

The so-called youth mortgage is not a separate product but a standard mortgage backed by a state guarantee from the Instituto de Crédito Oficial (ICO). The guarantee covers the part of the loan above the usual 80%, allowing up to 100% financing. The conditions published by the ICO:

• Who: young buyers aged 35 or under (no buyer may have turned 36 at signing) and families with dependent children, with no age limit.
• Guarantee: up to 20% of the loan, or 25% if the home has an energy certificate of D or better.
• Deadline: loans signed by December 31, 2027.
• Wealth: at most €150,000 net per buyer.
• Income: a multiple of the IPREM, Spain's public income index, which since June 19, 2026 depends on the province of the home; it rises by 0.3 IPREM per dependent child and by 70% for single-parent families.
• Property: first main home, with a maximum price set by each autonomous community.

The guarantee does not cover taxes or purchase costs, which the buyer still pays, and the participating bank decides whether to lend based on its own risk assessment. Some autonomous communities also run their own guarantee schemes.

Hipoteca inversa: Spain's reverse mortgage

The hipoteca inversa, governed by the first additional provision of Law 41/2007, works the other way round from a standard mortgage: the bank pays the owner a lump sum or regular income, secured on their main home. The owner keeps ownership and goes on living there.

• Who: people aged 65 or over, dependent, or with a recognised disability of at least 33%.
• Who grants it: credit institutions, specialised lenders and insurers authorised in Spain, which must offer independent advice.
• When the debt is due: only on the death of the holder, or of the last beneficiary if the contract says so.
• The heirs: they can repay the loan with no penalty to the bank; otherwise, the bank can only recover up to the value of the estate.
• Legal advantages: exemption from the graduated stamp duty and reduced fees, including a 90% cut in land registry charges.

The sums received are drawdowns on a loan, not income, so they are not subject to Spanish income tax (IRPF). The trade-off is the debt, which grows with interest year after year and reduces what the heirs receive. Few lenders offer it in Spain; selling the bare ownership or renting out the home are alternatives worth comparing with a notary or an independent adviser.

Before signing

Compare the APR (TAE), not just the nominal rate, which leaves out fees and linked products. Read the FEIN and the standardised warnings sheet, and see the notary, who must explain the contract free of charge and separately before signing. To compare with buying in France, our guide to mortgages in France covers the rules there, and the one on where to invest in Spain what savings earn today.

Frequently asked questions