Key data
| Regulation | Resolution of August 19, 2026, from the Bank of Spain, publishing certain official reference interest rates for the mortgage market |
|---|---|
| Publication | August 20, 2026 |
| Effective date | August 20, 2026 |
| Affected parties | Holders of variable-rate mortgages and financial entities with referenced loans |
| Category | Real Estate |
| Regulatory framework | Circular 5/2012 of the Bank of Spain |
| Average rate Spain (free housing, more than 3 years) | 3.077% |
| Average rate eurozone (housing, 1-5 years) | 3.520% |
If you have a variable-rate mortgage referenced to the official indices of the Bank of Spain, the figure that determines your next payment is already published. The average rate for mortgage loans of more than three years for free housing in Spain stands at 3.077% in July 2026, while the average rate for housing loans between one and five years in the eurozone reaches 3.520%. Both indices are published through the Resolution of August 19, 2026 from the Bank of Spain, effective immediately on August 20, 2026.
What does this regulation establish?
The Bank of Spain publishes monthly the official reference interest rates for the mortgage market, as established by Circular 5/2012 of the Bank of Spain. These indices are not merely indicative: they are the values that financial entities must use to calculate periodic reviews of variable-rate mortgage loans that are referenced to these indicators.
The August 2026 resolution publishes the data corresponding to July 2026 and includes two differentiated indices:
| Index | Scope | Term | Value July 2026 |
|---|---|---|---|
| Average rate of mortgage loans for free housing | Spain | More than 3 years | 3.077% |
| Average rate of housing loans | Eurozone | Between 1 and 5 years | 3.520% |
These indices are calculated based on actual transactions closed by financial entities during the reference period and are published monthly. Their use is regulated and entities cannot substitute them with other indices for contracts that have them agreed.
Economic and operational impact
For holders of variable mortgages, these rates are the direct thermometer of what they will pay in their next review. The higher the index, the higher the resulting payment after the update.
For financial entities, the publication of these indices activates a mandatory operational process: they must review all mortgage contracts referenced to these indicators and notify customers of the new conditions with the notice period agreed in each contract.
The difference between the Spanish index (3.077%) and the eurozone index (3.520%) is 0.443 percentage points. Depending on which index is agreed in your mortgage contract, the impact on payment can vary significantly. A loan referenced to the eurozone index bears a higher base rate than one referenced to the Spanish index.
Who does it affect?
- Holders of variable-rate mortgages referenced to the average rate of mortgage loans from the Bank of Spain, especially in upcoming annual or semi-annual reviews.
- Holders of mortgages referenced to the eurozone index (average rate of housing loans between 1 and 5 years in the eurozone).
- Financial entities and banks with portfolios of variable-rate mortgage loans referenced to these official indices: they are obligated to apply these values in contractual reviews.
- Financial and mortgage advisors who manage client portfolios with variable mortgages and need to anticipate the impact on payments.
- CFOs and financial directors of companies with real estate financing referenced to these indices.
- Real estate credit intermediaries who must correctly inform their clients about review conditions.
Practical example
Suppose you have a variable-rate mortgage of 150,000 euros over 25 years, referenced to the average rate of mortgage loans for free housing in Spain, with an agreed spread of +0.75 percentage points over the official index.
With the July 2026 data, the rate applicable in your next review would be:
- Official index: 3.077%
- Spread: +0.75%
- Total applicable rate: 3.827%
If that same loan were referenced to the eurozone index (3.520%), the total rate would rise to 4.270%, which represents a difference of almost half a percentage point compared to the Spanish index — a difference that in monthly payments can represent tens of euros per month throughout the life of the revised loan.
This calculation is indicative: the exact payment depends on the outstanding capital, remaining term, and specific conditions of each contract.
What should companies do now?
- Identify which index is agreed in your mortgage contract. Review your mortgage deed and locate whether it is referenced to the Spanish average rate (3.077%) or the eurozone rate (3.520%). They are different indices with different values.
- Calculate the impact on your next payment. Add the published official index plus the spread agreed in your contract to obtain the rate that will be applied in the next review.
- Anticipate notification from your financial entity. Banks are obligated to communicate the new conditions before applying them. Verify that you receive that communication and that the data matches the official indices published.
- If you manage a loan portfolio (financial entities or advisors): update calculation systems with the values for July 2026 and prepare notifications to clients affected by upcoming reviews.
- Compare with the previous month's index. If the rate has risen compared to the last review, the impact on payment will be upward. If it has fallen, the payment will be reduced. Check the historical data in the official resolution and on the Bank of Spain website.
Frequently asked questions
What is the official mortgage rate from the Bank of Spain for July 2026?
The average rate for mortgage loans of more than three years for free housing in Spain for July 2026 is 3.077%. The average rate for housing loans between one and five years in the eurozone stands at 3.520%. Both figures have been published through the Resolution of August 19, 2026 from the Bank of Spain.
How does the 3.077% affect my variable mortgage?
If your variable mortgage is referenced to the average rate of mortgage loans for free housing in Spain, in your next review the 3.077% plus the spread agreed in your contract will be applied. For example, with a spread of +0.75%, the resulting rate would be 3.827%. The exact payment depends on the outstanding capital and remaining term.
What is the difference between the Spanish index and the eurozone index?
They are two different indices defined in Circular 5/2012 of the Bank of Spain. The Spanish index (3.077% in July 2026) reflects the average rate of mortgage loans of more than three years for free housing in Spain. The eurozone index (3.520%) reflects the average rate of housing loans between one and five years throughout the eurozone. The difference between both is 0.443 percentage points, which can translate into tens of euros difference monthly in the payment.
How frequently does the Bank of Spain publish these reference rates?
The Bank of Spain publishes these official reference interest rates for the mortgage market monthly, as established by Circular 5/2012. Each resolution contains data from the previous month. The resolution published on August 20, 2026 contains the data for July 2026.
Are financial entities obligated to use these indices?
Yes. Financial entities with mortgage loans referenced to these official indices are obligated to use them to calculate periodic reviews of loan conditions. They cannot substitute them with other indicators in contracts that have them agreed. The legal framework is Circular 5/2012 of the Bank of Spain.
Official source
View complete regulation at official source
Notice: This article is purely informational in nature and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-17994