Spain's average mortgage tops €180,000 for the first time: what it means for buying on the Costa del Sol

The average home mortgage in Spain stood at €180,785 in July 2026, up 10.9% on a year earlier and the highest figure in the INE series. At the same time fewer loans were signed, 43,372, down 3.5%, and the average interest rate climbed back above 3%. In short: fewer buyers are taking out a mortgage, but each of them needs to borrow more and pays a little more for it. On the Costa del Sol, where prices are well above the national average, the trend is even more pronounced.

How big is the average mortgage in Spain in 2026?

According to the INE mortgage statistics, in July banks lent €7,841 million for home purchases, 7% more than in July 2025. Because the number of loans fell, the amount per mortgage rose sharply. These are the key figures for the month:

The Andalusian average is our own estimate: capital lent divided by the number of mortgages. Andalusia is still below the national average, but the region is losing transactions faster than Spain as a whole.

Why are mortgages getting bigger?

The main explanation is price. According to the INE, homes became 12.2% more expensive year on year in the second quarter of 2026, extending a run of more than twelve years of increases. The average loan is growing at almost the same pace as house prices: buyers are not borrowing more because they want more debt, but because homes cost more.

The second factor is savings. Many households struggle to put together the deposit, which pushes them to finance a larger share of the price. According to the monthly idealista/hipotecas report, 21.6% of the loans it brokered in July were for more than 80% of the property value, more than two points higher than a year earlier. These loans usually require a very strong profile, guarantors or public schemes for young buyers.

Why are fewer mortgages being signed if loans are bigger?

Because money is more expensive and fewer buyers can reach current prices. The average rate on new home mortgages was 3.01% in July, with 62.3% of loans at a fixed rate (3.03% on average) and 37.7% at a variable rate (2.97% on average). The average term remains at 26 years.

And the July figure does not yet fully reflect the ECB rate rise to 2.5%, in force since 16 September, or the Euribor above 3.1%. It is reasonable to expect banks' new autumn offers to be somewhat more expensive than their summer ones.

How much mortgage do I need to buy on the Costa del Sol?

Here the national average falls short. According to our Costa del Sol market report for September 2026, the median asking price for a home is €650,000. We have calculated how much you would need to borrow to buy at the median price in several municipalities, with 80% financing over 26 years at 3.01%, the average INE terms for July. The savings figure includes the 20% deposit plus around 10% for purchase taxes and costs.

Buying at the Costa del Sol median price takes a mortgage almost three times the Spanish average and a monthly payment of around €2,400, compared with about €840 for the average national mortgage on the same terms. In Marbella the loan is more than four times the average. These are asking prices, not sale prices, and there is a lot of variation within each municipality, but the order of magnitude is clear.

What should you consider if you are about to apply for a mortgage?

• The deposit is not just 20%: in Andalusia resale homes pay 7% transfer tax (ITP), plus notary, land registry, conveyancing and valuation fees. New builds pay VAT instead.
• The valuation decides: banks calculate the loan on the lower of the purchase price and the valuation. If the valuation comes in low, you will have to put in more.
• Fixed, variable or mixed: with fixed and variable rates almost level, a fixed rate protects you against further Euribor rises. A mixed mortgage is a middle option.
• Non-residents borrow less: a foreign buyer who is not resident in Spain usually gets 60% to 70% of the value, so they need considerably more savings than the table shows.
• Compare offers: after the ECB rise, the differences between banks can be significant, and a mortgage broker can save you time and money.

In short: bigger loans, fewer buyers

The record average mortgage does not mean banks are lending more freely; it means homes are more expensive and savings are not keeping up. For buyers on the Costa del Sol the practical takeaway is to arrange financing before house hunting: know how much the bank will lend you, how much savings you really need and which type of mortgage suits you. If you are thinking of buying in Málaga, Marbella or anywhere else on the coast, at EVS we help you find a home that fits your real budget.

This article is for information only and does not constitute financial advice. The payments are indicative and depend on each bank's specific offer.

Frequently asked questions