Nov 17, 2025
3 min read
People who have already bought a home, who are prepared to do so, who are ready to do so, the market is moving into a more complex situation.
Dark clouds loom over mortgages: Euribor aims to increase rates in spring and banks are preparing to make loans more expensive
The market is heading towards a more difficult situation both for those who have already bought a home and for those who are preparing for it.
Dark clouds are looming over the mortgage market.And not only for those who already have a loan for the purchase of a house, but also for those who have to request it from the bank in the coming months.
For those who already have it, the Euribor, the index to which most mortgages in Spain are referred, is trending higher, and expects an increase in premiums from next spring.And for those who will ask, the banks have ended the "mortgage war" of the last few years and are preparing to raise the mortgage rates.
As for the Euribor, almost halfway through November, the indicator is heading for what would be a fourth straight increase and is causing fresh disappointment for many mortgage holders.Currently, the Euribor will continue to reduce the repayments of borrowers with an annual review due to the fact that if it were to close at the 2.21% that it currently stands on average monthly, it would still be below the 2.5% at which it closed in November of last year.However, mortgages with semi-annual reviews have already started to rise since in October they closed at 2.187%, above the 2.143% that it marked at the end of April.And if the predictions of analysts are correct, it is very likely that loans with annual reviews will also grow again from spring.
HelpMyCash mortgage expert Mikel Riara noted: "The European Central Bank believes its interest rates have reached a balance point that will allow it to keep inflation under control and stimulate the eurozone economy."And for this reason, most forecasts say that they will not fall further by the end of the year and will remain at the 2% that the Eurobank put last June.
Interest rates are now in the "neutral zone, neither stimulating nor slowing down the economy. This means stability, although with a very clear view of waiting: there will be no new reductions until inflation gives more edge.
This is because the Euror, Riera adds, represents the high interest rate at which the central banks lend to each other and is therefore highly dependent on ECB rates.
The sustainability scenario will exceed the April-May eurigation target, which will exceed the annual revised mortgage credits.
But the bad news won't be limited to those who already have security.They will also be extended to those who will sign a loan in the coming months, as the bank will end the "mortgage war".Which the entity has maintained in recent years.The recent drop in interest rates has played a significant role in the huge competition between banks, which has led them to offer lower interest rates than in the rest of Europe.However, in most sectors this strategy has already been stopped.
As Riera added, companies have no appetite to lower their next interest rates or reduce their mortgage offers.In fact, some companies have been raising interest rates for some time now.This is especially true for companies with market share, the expert said.
According to HelpMyCash, at least seven banks have raised interest rates on mortgages they offer since mid-summer: Banco Santander, BBVA, Bankinter, COINC, Cajasiete, Unicaja and ING;the last two in fixed and variable mortgages.In all cases, the largest increases occurred in the fixed mortgages of these entities.
Banks have also increased the number of mortgage applications they reject.According to the ECB, one in five Spanish banks admitted to increasing the number of rejections in the last quarter, more than in Germany, Italy or France.As Ricardo Gulías, CEO of mortgage broker RN Tu Solution Hipotecaria, explains, the "mortgage war" has encouraged many people to seek a loan.However, the subjects have "learned to be prudent and to finance only those who can pay the mortgage".he added.
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