The grim picture for mortgage buyers isn’t over yet. End ECB rate hikes. They lifted rates again in a move aimed at cooling inflation. Euribor has been climbing, averaging around 3.534% last February, marking the continuation of a fourteen‑month streak of increases. For many households with variable‑rate loans, this shift translates into higher monthly payments and tighter budgets. Law firms focused on consumer law have seen a clear uptick in inquiries as families struggle with rising costs.
In the specific case of the province, where the average mortgage issued last year according to the INE stood at 105,000 euros, the rate rise to roughly 3.534% from -0.502%—a level Euribor had reached in December 2021—could push a monthly payment from about 375 euros to nearly 590 euros for those renewing in the coming weeks. That is a difference of 214 euros per month, over 2,575 euros per year. When added to higher prices for goods and services and rising energy bills, the impact is a heavy blow for many homes.
Yet the trend suggests this may not be the last climb. The Financial Users Association forecasts the indicator staying around 4% into next summer, with other sources indicating it could rise further before moderating later on.
Outside Spain, the Bank of Spain’s official data through December shows Euribor at 3.54% on the tape—one of the lowest readings in recent history. Those responsible for Spain’s major economic units have often attempted to minimize the immediate effects of the rate rise in the latest weekly reports.
However, law firms have started to notice a surge in inquiries. Many citizens are looking closely at their mortgage receipts with concern. Carlos Zarco, head of the Alicante consumer law department, notes, “Casual inquiries are diverse, but many are asking about possible relief through U.S. measures, good practices codes to renegotiate a mortgage, and the Second Chance Law.”
How many people from Alicante will benefit from mortgage assistance measures?
The challenge is that many residents do not meet the eligibility requirements. The government document outlining the support measures includes deficiencies or extensions meant to help with eligibility, but it does not waive payments entirely. That reality makes it feel like a short‑term aid with potential long‑term consequences, according to Zarco. Under the Second Chance Law, only some cases receive protection for habitual residence, so it may not be an attractive option for many borrowers.
Experts warn that increases in defaults and liens could rise, particularly if the new Mortgage Act—enacted in 2019—extends the window the bank can consider before claiming a mortgage. Previously, judgments could be triggered after three to twelve months of delinquency depending on the volume paid. If Euribor continues to rise, the main fallout might not become evident until 2024, unless circumstances shift sooner.
new hires
On the market development front, last year banking institutions approved 26,110 new mortgages in Alicante, with 19,499 financing a home purchase. That represented a 9.4% year‑over‑year increase. The total amount financed reached 2,815 million euros, of which 2,059 million was for housing purchases. The average loan amount rose from 102,540 euros to 105,636 euros. As rates climb, a slowdown in these numbers is expected, though a short‑term “carpe diem” effect has kept some buyers optimistic about future purchases despite the risk of additional increases.
Regarding the chosen payment plan, the Registrars’ College reports that last year 60.9% of mortgages in the Valencian Community were fixed rate, meaning those borrowers would be shielded from further rises, while 39.1% followed a variable rate path.
Calculating the share of fixed versus variable loans remains tricky. The total number of mortgaged households in Alicante, per the latest Population and Housing Survey, exceeds 209,000. Until recently, the most common structure was Euribor plus a spread, making the precise impact of rate shifts a moving target for many households.