In 2025, Spain is seeing a significant increase in the average amount of mortgage loans. According to notaries, over the past two months this figure has exceeded 170,000 euros, marking the highest level since 2008. On average for the year, the mortgage loan amount has already approached 168,000 euros, which is notably higher than the historical average recorded since 2007—142,805 euros.
The main reason for the increase in mortgage sizes, experts say, is the continuing rise in housing prices. In July, the cost per square meter on the secondary market reached 2,471 euros, up 14.7% from a year earlier. This sets a new record for the Spanish real estate market. The most expensive cities remain San Sebastián, where a square meter costs 6,230 euros, Madrid (5,718 euros), Palma de Mallorca (4,951 euros), and Barcelona (4,943 euros). Meanwhile, in cities such as Zamora, Jaén, and Ciudad Real, prices remain the lowest—ranging from 1,227 to 1,386 euros per square meter.
According to data from the National Institute of Statistics, the housing price index in the first quarter of the year recorded its highest annual increase since 2007. This growth has continued for 44 consecutive quarters, indicating a long-term trend of rising property values.
In addition to pricing, the situation is also influenced by banks’ policies, as they are actively increasing lending volumes. Over the past year, the share of mortgages with a high loan-to-value (LTV) ratio has grown. Currently, the average LTV stands at 65%, which is close to the historical peak recorded at the end of 2018 (66.5%).
The number of mortgages where the loan amount exceeds 80% of the property value is also increasing. Currently, almost 12% of new loans are issued with such a high level of financing — the highest figure in the past six years. This growth is driven by government programs supporting young people, in particular, the provision of state guarantees for part of the housing cost.
Despite the increase in the share of risky loans, experts note that the situation is far from the pre-2008 crisis period, when the proportion of mortgages with LTV above 80% exceeded 17%. Today, banks are acting more cautiously, and household debt levels remain under control.
The reduction of interest rates by the European Central Bank since last summer has also supported mortgage demand. As a result, monthly loan payments remain affordable for most families. In addition, more borrowers are choosing fixed rates — in July, their share reached 82% of all new mortgages, compared to 66% a year ago. This allows borrowers to protect themselves from possible payment increases in the future.
According to notaries, in May the average amount of a new mortgage in the country was €171,212. However, the situation varies by region. In Madrid, the average loan exceeds €277,000, while in the Balearic Islands it stands at €269,411. In Catalonia and the Basque Country, average amounts are also above the national level, whereas in several regions—Asturias, Castile and León, Castile-La Mancha, Murcia, and Extremadura—the average mortgage amount does not reach €130,000.
The typical borrower profile today is a person aged 25 to 45 with stable employment. More than 80% of applicants have a permanent contract or work in the public sector. The average debt-to-income ratio is 27%, and the average loan requested is 84% of the property’s value, which is roughly equivalent to €164,000. On average, borrowers contribute about €53,000 of their own funds.
Most mortgages are granted for the purchase of a primary residence (77.4%), less frequently for acquiring a second property (10.6%) or for refinancing (6.4%). At the same time, 74.3% of all new loans do not exceed €200,000.
Thus, rising property prices, active policies by banks, and government support measures for young people are setting new records in Spain’s mortgage market. Despite the increase in the average loan size, experts believe that risks for borrowers remain moderate, thanks to low rates and the cautious approach of banks.
