On 10 September 2026 the European Central Bank raised its three key rates by 25 basis points (a quarter of a percentage point): the deposit rate goes to 2.50%, the main refinancing rate to 2.65% and the marginal lending rate to 2.90%, all effective 16 September. It is the second hike of the year after June. The 12-month Euribor, the index behind almost every variable mortgage in Spain, had already moved ahead of it: it closed at 3.138% on 11 September, its highest level in three years.
In our June follow-up we expected a September hike and a Euribor of around 2.95% by the end of this month, reaching the 3.10–3.20% range only in the first quarter of 2027. The hike landed on schedule. Euribor got there about four months early.
Below is what that means in euros for someone buying on the Costa Blanca, Costa del Sol, Costa Cálida or Mallorca with a Spanish mortgage, and what changes for anyone who already holds one.
What the ECB decided, and why
The Governing Council's statement points at one driver: the conflict in the Middle East keeps pushing energy prices up, and inflation in the euro area is expected to stay well above the 2% target for an extended period. Eurozone inflation is currently running above 3%. The ECB gave no guidance on where rates go next. Its wording is that decisions will be taken "meeting by meeting" on the basis of the data.
| Rate | Before | From 16 September 2026 |
|---|---|---|
| Deposit facility | 2.25% | 2.50% |
| Main refinancing | 2.40% | 2.65% |
| Marginal lending | 2.65% | 2.90% |
Source: European Central Bank, monetary policy decision of 10 September 2026.
Euribor: 3.14% and the sharpest annual jump since 2023
The 12-month Euribor has now spent seven consecutive sessions above 3.1%. The provisional September average is around 3.10%, against 2.954% in August. Measured against September 2025, that is a rise of roughly 0.93 percentage points, the seventh month in a row of year-on-year increases and the largest since November 2023.
For an existing variable-rate mortgage that resets this month, idealista/hipotecas puts the increase at between €74 and €80 a month, or close to €1,000 a year, on an average Spanish loan. The exact figure depends on the balance, the remaining term and the bank's margin.
| 12-month Euribor | Value |
|---|---|
| 11 September 2026 (daily) | 3.138% |
| September 2026 average (provisional) | ~3.10% |
| August 2026 average | 2.954% |
| July 2026 average | 2.855% |
| September 2025 average | ~2.17% |
| 2023 peak | 4.2% |
How the index works. Spanish variable mortgages are priced as Euribor plus a fixed margin, and most reset once a year. Your payment does not move on the day the ECB acts. It moves on your next reset date, using the Euribor monthly average for the reference month written into your deed. That is why a September rise reaches borrowers between October and next summer, one household at a time.
What a non-resident mortgage costs today
Spanish banks lend to non-residents 60–70% of the purchase price or the bank's valuation, whichever is lower, over 20 to 25 years; the buyer funds the remaining 30–40% in cash. Indicative fixed rates for a well-documented non-resident are currently in the 3.2–4.3% range; variable offers sit at Euribor plus 1.5–2.5 points. These are market ranges, not offers, and banks are expected to reprice their fixed and mixed products upwards in the coming weeks.
The table shows the monthly payment on a 25-year loan at 70% financing, comparing a fixed rate with a variable loan at Euribor plus 1.5 points, first at the June Euribor and then at today's.
| Purchase price / loan | Fixed 3.5% | Fixed 4.0% | Variable, June (Euribor 2.81% + 1.5) | Variable, now (Euribor 3.10% + 1.5) |
|---|---|---|---|---|
| €200,000 / €140,000 | €701 | €739 | €763 | €786 |
| €300,000 / €210,000 | €1,051 | €1,108 | €1,145 | €1,179 |
| €500,000 / €350,000 | €1,752 | €1,847 | €1,908 | €1,965 |
Two things stand out. First, a variable loan at today's Euribor already costs more per month than a fixed at 4%. Second, if Euribor went back to its 2023 peak of 4.2%, the €300,000 example would reach about €1,315 a month. A fixed rate removes that scenario for the life of the loan. You can run your own numbers in our mortgage calculator, and the full conditions for foreigners are in the mortgage guide.
What this means for the buyer
1. An offer in hand is worth signing, not shopping
A bank's binding offer, the document known in Spain as the FEIN, is normally valid for a limited period. Banks set their fixed rates by reference to market interest rates, and those moved after the ECB decision, so any offer issued before 10 September is now below the market. If the numbers work, sign inside the validity window rather than requesting fresh quotes.
2. Fixed versus variable has a clear answer at this level
With Euribor at 3.1% and the ECB explicitly not ruling out further moves, a variable mortgage carries the risk of further rises without being any cheaper for it. For a non-resident with a 20–25 year horizon, a fixed rate of around 3.5% is the conservative choice. Mixed products, fixed for the first 5–10 years and variable afterwards, are the middle ground the banks are now promoting.
3. Existing variable borrowers: check the reset month
If your annual reset falls between now and December, the higher Euribor is locked in for twelve months. A switch to a fixed rate (subrogación or novación) is still possible, and the fees for the change are usually small; ask your bank for the figure. If your reset was in the spring, you have until then to decide.
4. Off-plan completions in 2027 need a mortgage clause check
Buyers completing a new build in late 2026 or 2027 will apply for the mortgage at completion, not at reservation. Any budget built on the 2025 Euribor of around 2.2% should be recalculated at 3.1% or higher. The gap on a €210,000 loan is about €105 a month.
5. Cash buyers: the rate cycle works in your favour
Higher rates squeeze buyers who depend on financing. In Alicante province foreign buyers took 46% of purchases in the second quarter, and many of them buy without a Spanish mortgage. Prices have not reacted yet: INE's house price index rose 12.2% year on year in the second quarter of 2026, with resale up 12.9% and new build up 7.4%. See the market forecast for the regional picture.
Outlook: no cuts on the horizon
In June the market debated whether September would be the last hike of the cycle. After the 10 September statement, and with inflation above 3%, that debate has moved to whether a further step comes in December or early 2027. The ECB has committed to nothing. What it has done is remove the assumption, still built into many buyers' budgets, that mortgage costs would drift down through 2026.
Our reading is simple. Euribor spent the summer catching up with the ECB; now the ECB is catching up with inflation. For a purchase on the Spanish coast in the next six months, budget on a Euribor of 3.1–3.3%, take a fixed rate if one of around 3.5% is on the table, and treat any lower quote you already hold as the best you will see this year.
