Walter Finch
EXPAT homeowners in Spain are being urged to review their mortgage arrangements as more people switch their home loans to different banks.
The trend has taken hold as lenders are offering increasingly attractive deals following eight consecutive interest rate cuts by the European Central Bank over the past year.
Moving your mortgage to a different bank – known as subrogation in Spain – rose to 4.5% of all new mortgage operations in the second quarter of 2025, marking the first increase since late 2023, according to data from idealista/hipotecas.
The surge comes as the ECB has driven eurozone interest rates down to just 2%, prompting Spanish banks to offer increasingly attractive fixed-rate mortgages.
Several lenders are now offering deals at around 2.5% with maximum bonuses, with some operations being signed at close to 2% or even below.
“After the wave of mortgage changes in 2022 and 2023 caused by soaring Euribor rates, this time it’s the excellent fixed and mixed-rate conditions being offered by banks that are encouraging those with variable mortgages, as well as some who signed fixed-rate deals at higher levels, to review their mortgages,” explained Juan Villén, director general of idealista/hipotecas.
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The trend has seen fixed-rate mortgages dominate the market, accounting for 80% of all new home loans – a historic high.
Among those moving their mortgages to new banks, 75% are opting for fixed-rate deals, the highest level since early 2022.
Madrid leads the charge in requests to move mortgages to new banks, representing 26.7% of all applications nationwide, followed by Catalonia at 22.8% and Andalucia at 14.2% – key expat property markets.
Those seeking to move their mortgage in Madrid have an average monthly income of €4,600, well above the average nationally of €3,900, while the average amount requested for the bank transfer stands at €288,000 in the capital.
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The data suggests expat homeowners could save significant money by reviewing their current mortgage arrangements, particularly those still on variable rates or older fixed-rate deals signed when rates were higher.
Financial experts are urging property owners to assess whether switching could reduce their monthly payments and provide greater stability.
However, experts don’t expect bank-switching activity to return to the record levels of autumn 2023, when it peaked at over 16% of all operations.
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