Mortgages in Spain are on the rise due to low interest rates and concern over future property price increases

The number of NEW mortgages in Spain has risen to levels that have not been seen since the beginning of 2011.

According to figures released by the National Institute of Statistic on Wednesday, 243,257 mortgages for home purchases were approved between January and June of this current year.

It was a 25% increase compared to 2024.

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This is the largest number since the first 6 months of 2011 when the real estate bubble burst and the market was trying its best to recover.

Maria Matos from the property portal Fotocasa told El Pais that ‘credit is cheaper and improves financing conditions’, which is boosting demand for housing.

Matos also added that “2025 looks to be the best year ever for the mortgage markets”.

In June 2025, more than 41,800 mortgages have been approved, up 31,7% from a year ago.

The average amount of mortgages granted rose by 15.5% to a figure of €168,363.

The mortgage boom may be due to two factors.

Potential buyers may feel now is the best time to buy, as they don’t see much chance that property prices will slow down.

The second reason for the lower interest rate is due to the declining Euribor Index.

In June, the average mortgage rate was 2.99%. This is the lowest level since early 2023.

The first six months of this year saw 357,533 homes sold in Spain, the highest number since 2007.

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