The mortgage market has continued to change throughout 2026. After several years marked by significant movements in interest rates, the cost of financing a home remains closely linked to factors such as the Euribor, decisions made by the European Central Bank (ECB), and the conditions offered by individual lenders.
For people considering buying a home or reviewing the terms of an existing mortgage, understanding how these factors are evolving can be particularly important before making a financial decision.
How Have Interest Rates Changed in 2026?
During the first months of 2026, official ECB interest rates were relatively moderate. However, the situation changed during the summer.
In June, the ECB increased its three key interest rates by 25 basis points. The deposit facility rate reached 2.25%, while the main refinancing operations rate increased to 2.40% and the marginal lending facility rate reached 2.65%.
The ECB subsequently raised rates by another 25 basis points in September 2026. From September 16, the deposit facility rate stands at 2.50%, while the main refinancing operations rate is 2.65% and the marginal lending facility rate is 2.90%.
These decisions are relevant to the mortgage market, although they do not mean that every mortgage will automatically become more expensive. The conditions of each loan depend on its structure, the reference rate used and the margin applied by the lender.
Euribor Remains an Important Reference Rate
In Spain, the 12-month Euribor is one of the main reference rates used to calculate payments on variable-rate mortgages.
In general terms, when Euribor increases, payments on variable-rate mortgages may also increase when the loan is reviewed. The exact impact depends on factors such as the outstanding balance, remaining term, mortgage spread and the date of the rate review.
Official data from the Bank of Spain show that the 12-month Euribor started 2026 at approximately 2.245%. During the following months, it increased gradually, reaching around 2.804% in May, 2.855% in July and 2.954% in August.
The August figure represented an increase of approximately 0.840 percentage points compared with the same month of the previous year.
For homeowners with variable-rate mortgages, this evolution can have a direct impact on monthly payments. However, the actual change will vary from one mortgage to another.
What About Fixed-Rate Mortgages?
Fixed-rate mortgages work differently from variable-rate loans. With a fixed-rate mortgage, the interest rate is established when the mortgage is signed and the monthly payment generally remains unchanged throughout the agreed term, provided that the contractual conditions are maintained.
The main advantage of a fixed-rate mortgage is predictability. Borrowers know how much they are expected to pay each month, making it easier to plan their household budget.
However, the initial interest rate can differ from that of a variable mortgage, and conditions vary considerably between lenders.
For this reason, comparing only the advertised interest rate may not be enough. Borrowers should also examine the APR, fees, linked financial products and other conditions included in the offer.
Variable and Mixed-Rate Mortgages
Variable-rate mortgages are generally linked to a reference rate, such as Euribor, plus a margin established in the mortgage contract.
For example, a mortgage could have an interest rate based on Euribor plus a specific spread. If the reference rate increases, the interest rate applied to the mortgage may increase at the next review. If the reference rate falls, the mortgage rate may decrease.
The frequency of these reviews depends on the terms of the mortgage and may be annual or semi-annual.
There are also mixed-rate mortgages. These loans normally apply a fixed interest rate during an initial period before switching to a variable rate.
This structure combines characteristics of both fixed and variable mortgages. Therefore, it is particularly important to understand what rate will apply once the initial fixed period ends and which reference rate will be used to calculate future payments.
What Could Happen to Mortgage Rates in the Coming Months?
The future direction of interest rates cannot be known with certainty.
The ECB has stated that its decisions depend on incoming economic and financial data and that it does not commit in advance to a particular path for interest rates.
In September 2026, the ECB also revised its inflation projections. Its baseline scenario projected average inflation of around 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028.
This means that people considering a mortgage should be cautious about basing their decision solely on predictions about where Euribor or interest rates might be one or two years from now.
Instead, it can be useful to consider several possible scenarios and determine whether the household budget could cope with changes in monthly mortgage payments.
What Should You Check Before Taking Out a Mortgage?
Before signing a mortgage, it is important to compare different offers and look at the overall cost of the loan rather than focusing only on the advertised interest rate.
Some of the most important factors to examine include:
- The interest rate and APR.
- The spread applied to variable-rate mortgages.
- The length of the mortgage.
- The monthly payment.
- Early repayment or arrangement fees.
- Linked products such as insurance or bank accounts.
- Conditions required to receive interest-rate discounts.
- The total amount that will be repaid over the life of the mortgage.
For variable-rate mortgages, borrowers should also pay attention to simulations showing how their payments could change if interest rates rise, fall or remain stable.
These calculations are useful for understanding potential scenarios, but they should not be interpreted as predictions of future interest rates.
A Mortgage Market Still Influenced by Interest Rates
The Spanish mortgage market is entering the later part of 2026 in a different environment from the beginning of the year. Euribor has increased during recent months, while the ECB has raised its key interest rates in both June and September.
For prospective homebuyers, this makes comparing mortgage products and understanding the total cost of borrowing particularly important.
Rather than trying to predict exactly where Euribor will be in the future, borrowers can focus on understanding how different interest-rate scenarios would affect their monthly budget.
Ultimately, mortgage conditions can vary significantly depending on the lender, the property and the borrower’s financial profile. Before taking out a mortgage, it is therefore worth comparing several offers, reading the contractual conditions carefully and calculating whether the resulting monthly payment would be affordable under different scenarios.