The 12-month Euribor closed July at 2.855%, its highest level of 2026, and the August average is hovering around 2.93%. For an average variable-rate mortgage, the annual review means paying roughly €65 more per month. The market has reacted quickly: 60.9% of new home loans in Spain are now signed at a fixed rate, as buyers look to shield themselves from further rises.

Analysts sketch two scenarios for the end of 2026: if energy prices ease, the index could soften to the 2.5%–2.7% range; if inflation picks up and the ECB tightens again, it could finish the year close to 3%. Nobody, in any scenario, expects a return to the zero rates of the last decade.

For buyers in Alicante or Benidorm, the maths is less intuitive than it looks: waiting for Euribor to fall can prove expensive, because property prices keep climbing in the meantime (the province hit an all-time high of €2,764/m² in April, up 12.2% in a year). A tenth of a point less interest does not offset a 10% higher price. The key is negotiating a good mortgage today — banks still compete hard for solvent buyers with fixed rates below 3% — and buying with real local data rather than the listing price.

Fixed, variable or mixed: choosing with Euribor at 2.855%

The fact that 60.9% of new mortgages are signed at a fixed rate says a lot about what buyers want today: peace of mind. There is no single right answer, but there is a simple script:

  • Fixed: the same instalment for the life of the loan. With offers below 3% for solvent profiles, it is the preferred choice for anyone who does not want to depend on annual reviews.
  • Variable: starts with lower instalments if Euribor eases towards the 2.5%–2.7% range of the benign scenario, but carries the risk of the opposite one (closing the year near 3%).
  • Mixed: a few fixed years, then variable. Useful if you expect to repay early or to sell before the variable stretch begins.

Practical rule: always compare the APR and the tie-ins (payroll, insurance), request several offers and negotiate — banks are still competing hard for solvent borrowers.

Buying? Three steps before you sign

  1. Stress-test your instalment. If a rise like this year's (roughly €65 more per month on an average variable loan) squeezes your budget, your margin is too tight.
  2. Budget the full cost of the purchase, not just the price: taxes, notary and registry fees. Our guide to buying costs in the Valencia region has the detail.
  3. Negotiate with local data. In a market rising 12.2% year on year, paying the asking price without checking closed sales is the most expensive mistake.

Selling? Financed buyers take longer

With higher rates, mortgage-dependent buyers negotiate harder and take longer to secure bank approval: prepare your paperwork before listing and prioritise buyers with advanced financing or cash. If timing matters to you, here is how to sell fast in Alicante without underselling.

And if you own property here and are thinking of selling, this environment works in your favour: demand keeps breaking records despite Euribor, largely because nearly half of all purchases in the province are made by international buyers who do not depend on Spanish financing. Ask for a free valuation to find out what your home is worth today, and use our selling costs calculator to see in one minute what you would actually pocket.