Spain's mortgage market is on track for best year since 2010
Some 420,000 property finance contracts have been signed nationally up to 31 October
The mortgage market in Spain is heading for a near-historic 2025, after a strong October in which 52,198 home loans were signed, the best figure in the last 15 years (since September 2010). It is also a figure well above the usual monthly average for the previous year, set at around 35,000 deals done.
Up to that month, according to the stats from Spain's INE national statistics institute, some 419,913 loans had already been formally completed. This means that, foreseeably, and after this 18.4% growth, 2025 will close with a figure of around 500,000 mortgages granted, a number that would represent the maximum achieved since 2010, when 607,535 mortgages were signed. According to experts from real estate portal Fotocasa: "This dynamism reflects not only the rebound in credit approvals, but also the strong movement in home sales, driven by optimism and growing buyer confidence. All of this positions 2025 as a truly golden age for mortgage-financed housing," said María Matos, Fotocasa's spokesperson.
The INE data shows that 61.3% of mortgages signed on housing in October 2025 were fixed-rate, while variable-rate mortgages accounted for 38.7%. The average interest rate fell again to 2.81%, the lowest level since January 2023. Fixed-rate loans averaged 2.82%, while variable-rate ones averaged 2.79%.
Within this current state of affairs, mortgage transfers are also on the rise, driven by the interest of many mortgage-holders in improving their mortgage terms and taking advantage of the favourable situation. "In this context, banks, which still have room to adjust their mortgage offers, are not only attracting a greater number of applicants, but will also consolidate a significant upturn in their sales due to the positive lending approvals expected by year end," said Matos.
Market strength
Although this year's market conditions for mortgages are more favourable, they may not be enough to offset the sharp increase in market prices, which have already risen by 18.8% by November 2025. This has been reflected in a sharp increase of 11% in loan capital granted in October alone, a figure that climbs to 33.4% for the year as a whole.
According to Ricardo Gulias, CEO of mortgage brokerage RN Tu Solución Hipotecaria, "The searches and negotiations carried out during the summer usually materialise in October, making this month one of the most conducive to closing deals. Even so, the data confirms the strength of the market and the continued activity at very high levels." He added: "We are seeing double-digit increases because there is high demand and low supply. Buyers are willing to pay more to avoid missing out on a property and this is clearly pushing prices upward."
According to the experts, if the Euribor interbank-lending rate maintains its current trajectory, banks are likely to move away from the intense commercial competition seen in recent months and opt for more prudent products that are more in line with the new environment of monetary stability. "This scenario could slightly moderate the pace of sales in 2026, bringing it closer to an average of 40,000 mortgage signings per month", said María Matos.
