In 2025, the Spanish mortgage market continues to adapt to a changing economic landscape. Following a 2024 shaped by moderate inflation and key decisions by the European Central Bank (ECB), mortgages 2025 begin the second quarter with a blend of stability and uncertainty.

This article offers an in-depth analysis of how mortgages are performing during this crucial period of the year, what the main banks are offering, how interest rates have evolved, and what trends are shaping access to home ownership in Spain.

1. General economic context in Q2 2025

Inflation and the ECB

Inflation in Spain has begun to stabilise at around 2.4% year-on-year, slightly above the ECB’s target but within manageable margins. This trend has directly influenced monetary policy decisions, particularly regarding official interest rates.

The ECB has chosen to keep rates steady at 4%, though there is growing speculation about a possible cut in the third quarter if inflation continues to ease. This decision has directly impacted the Euribor, the benchmark index for most mortgages 2025 with variable rates.

Euribor in April 2025

In April, the 12-month Euribor showed a slight downward trend, settling at around 3.42%. This figure, although lower than the peaks seen in 2023 and 2024, remains significantly higher than in the pre-pandemic decade.

In this context, many buyers are opting for fixed or mixed-rate mortgages, seeking financial stability amid economic uncertainty.

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2. Interest rates for mortgages 2025

Fixed-rate mortgages

Despite the slight fall in the Euribor, fixed-rate mortgages remain popular among Spanish buyers. The main reason is predictability: those taking out a fixed-rate mortgage in 2025 know exactly what they’ll pay each month for the entire term.

In Q2, fixed rates offered by major banks range from 3.1% to 3.7% nominal interest rate (TIN), with APRs reaching up to 4%, depending on the client’s profile and any additional products contracted.

Variable-rate mortgages

Although less popular, variable-rate mortgages are still an option for certain profiles. Currently, banks are offering differentials from +0.49% above the Euribor, though more commonly, terms range from +0.7% to +1.2%.

The main risk here is the fluctuation of the Euribor, which, although currently declining, could rise again if inflation becomes uncontrolled.

Mixed-rate mortgages

One of the strongest trends among mortgages 2025 is the rise of mixed-rate mortgages. These combine an initial fixed-rate period (usually between 5 and 10 years) with a variable-rate period. They are ideal for those who want early stability and believe in a potential drop in interest rates mid-term.

Initial fixed rates are currently around 2.7%–3.2%, making them very competitive compared to full-term fixed-rate offers.

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3. Main banks and current mortgage offers

Banco Santander

Santander is heavily promoting mixed-rate mortgages, with one of the most aggressive offers in the market. As of April 2025, its flagship product offers a fixed rate of 2.75% for the first 10 years, followed by Euribor +0.79%.

They also offer up to 0.7% in rate discounts when bundling products such as home insurance, life insurance, and payroll direct deposit.

CaixaBank

CaixaBank maintains a conservative but competitive approach. Its fixed-rate mortgage hovers around 3.2% TIN, and the variable-rate option starts at Euribor +0.89%. Mixed-rate mortgages are also available, with 5-year fixed-rate periods at 2.95%.

BBVA

BBVA has simplified its mortgage range and stands out with a variable-rate mortgage at Euribor +0.69%, without requiring bundled products. Its fixed-rate mortgage is around 3.4% TIN, which can be lowered under specific conditions.

ING

The Dutch bank remains a favourite for clients seeking no-fee mortgages with minimal conditions. Its fixed-rate mortgage is currently at 3.15%, and the variable-rate version sits at Euribor +0.59%. ING has also launched a green mortgage with better terms for energy-efficient homes.

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4. Requirements to obtain a mortgage in 2025

Borrower profile

As of Q2 2025, banks continue to be cautious when granting mortgages. The most valued profiles include:

• Permanent contracts or civil servants

• Stable monthly income above €2,000

• Over one year in current employment

• Minimum 20% deposit of the property’s value

In many cases, if more than 80% of the property value is financed, banks require guarantors or additional collateral.

Credit score and debt ratio

The recommended debt-to-income ratio remains at 30–35% of net monthly income. In addition, applicants must have a clean credit history and not appear on default registers such as ASNEF or RAI.

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5. Real estate market trends

Housing price evolution

According to Spain’s National Statistics Institute (INE), the average property price has increased by 1.9% year-on-year. However, regional differences are significant:

• Cities like Madrid, Barcelona, and Málaga have seen price rises of over 4%.

• In rural or less demanded areas, prices have slightly decreased.

This directly affects access to mortgages 2025, as valuations impact how much financing is approved.

Growing demand for energy-efficient homes

One of the major shifts in the market is the increasing demand for sustainable housing. Financial institutions are offering better terms for properties with A or B energy efficiency certificates, and many are promoting green mortgages.

This shift is not only about environmental values but also because lower energy bills reduce financial strain, lowering the risk of default.

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6. Comparing mortgage types: which one is best?

Let’s compare three typical scenarios to understand which mortgage option might be more advantageous in Q2 2025.

Fixed-rate mortgages offer total peace of mind, while mixed options provide early savings with some protection. Variable rates are only advisable for those who can absorb potential increases in repayments.

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7. Is 2025 a good time to buy property?

This is one of the most frequently asked questions in Q2. The answer depends on the buyer’s profile and objectives:

• Yes, if you have financial stability, a deposit saved, and find a property that fits your budget. Interest rates are lower than in 2023 and may rise again if the ECB delays future cuts.

• Not necessarily, if you’re expecting a general drop in house prices. While prices may adjust in some areas, demand in others continues to push values upward.

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8. Tips for choosing the right mortgage in 2025

To select the best mortgage in 2025, consider the following:

1. Compare offers: Don’t settle for the first deal. Use comparison tools and consult independent advisors.

2. Negotiate terms: Banks often improve their offers if they know you’re shopping around.

3. Look beyond the nominal rate: Always consider the APR, additional products, fees, and early repayment penalties.

4. Simulate different scenarios: Calculate how your monthly payments would change if the Euribor rises by 1%.

5. Seek professional advice: A mortgage broker can help you find the best deal for your situation.

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9. Forecast for Q3 2025

While mortgages 2025 remain attractive, the near future depends on several key factors:

• Inflation trajectory

• ECB decisions in its June meeting

• Labour market stability in Spain

• Banks’ responses to any interest rate cuts

Many analysts believe we could see a rate cut in the second half of the year, which would impact new mortgage offers—especially variable and mixed types.

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Conclusion

Mortgages 2025 in Spain are entering the second quarter of the year in a relatively stable yet cautious economic environment. The Euribor is easing, banks are competing with attractive fixed and mixed-rate offers, and buyers have more options than they did a year ago.

If you’re considering buying property in 2025, make sure to research thoroughly, compare all the available options, and choose the mortgage that best fits your financial needs and lifestyle. Don´t hesitate to ask GolfSeaHomes Realtors