What is the average price of a mortgage in Spain?

30 November, 2023 | M Aparicio

In this new article from Hipotecas Plus, we are going to talk about the average price of a mortgage in Spain. It’s a curious fact that may interest many of our readers.

If, for example, you are planning to buy a property in Spain as a second residence or thinking about the future, these numbers, the average amount of a mortgage in Spain, will tell you how much you might need and how prices are fluctuating in the mortgage market.

Knowing the average price of mortgages in Spain can help you understand if it’s the right time for you, in terms of going for your mortgage or if you should wait for prices to drop.

So let’s go directly to the most updated data. The average amount of mortgages on housing in Spain decreased by 4.6% in August 2023 compared to the same month last year, standing at about 138,171 €.

These are data provided by the National Institute of Statistics (INE).

From this link, you can access the INE press release regarding the most updated mortgage data.

This average amount of mortgages on housing of 138,171 € in August 2023 also represents a decrease in the intermonthly rate, that is, compared to the previous month. In July 2023, the average amount was 141,412 €.

Graph of the Average Price of a Mortgage in Spain

Next, we offer you a graph that shows how the average price of mortgages has evolved since 2015.

We see that, alternating small increases with slight setbacks, the average price has been progressively increasing. With the graph, we then confirm an upward trend in the price of the mortgage.

In the graph, we also observe a quite pronounced peak in February 2020. It’s an interesting fact, as March 1, 2020, is when the start of the Covid-19 pandemic was declared in Spain.

Undoubtedly, before that month there was already knowledge and alarming data about the pandemic, and the peak observed in the graph may have a lot to do with it. Soon came the days of confinement, and practically all the inhabitants were going to take refuge in our homes.

Ideal Time to Sign a Mortgage

So, if you are thinking about signing a mortgage to buy your home, this could be a good time, given the upward trend in the average amount of mortgages.

Fixed-rate mortgages have progressively increased their APR since the Euribor began to rise sharply, but we can still find a fixed rate close to 2.30%.

And as for variable mortgages, we can find them with a differential over the Euribor below 0.5%.

Mixed mortgages are also gaining a lot of popularity among citizens, as they allow coping with the current rise of the Euribor, by contracting, for example, a fixed rate for the first 10 years at 2.5% and then switching to a variable rate with a differential of 0.55%.

And what about the number of mortgages?

Another interesting figure is the number of mortgages on housing registered in the property registries. In August 2023, which is the latest data we have, 28,344 mortgages on housing were registered in Spain.

It is a figure slightly lower compared to the month of July, which was 29,223 mortgages.

We also observed a reduction in the capital loaned. In August 2023, it was 3,916,326 (in thousands of euros), which means a reduction of 6.6% on a monthly basis and on an annual basis, that is, comparing this figure with the capital loaned the previous year, we are facing a decrease of 26.2%.

Experts point out a clear trend: fewer mortgages are being signed, but the existing ones are becoming more expensive. Hence the upward trend in the average housing price.

Summary of the Average Mortgage Prices in Spain

In summary, the mortgage landscape in Spain is like a challenging roller coaster. The numbers may change, but you can always find good opportunities.

The average price of mortgages in Spain is not just a set of numbers. It is the key to unlocking the doors of your future home.

By observing and understanding these data, you are open to good information, which will lead you to make better decisions regarding your future mortgage.

We recommend that you stay informed on our Hipotecas Plus blog:

  1. How many mortgages are there in Spain?

  2. The Top 5 Mistakes Foreigners Make When Buying Property in Spain

  3. What percentage of income should a mortgage be?