Mortgaged Homes Excluded from Spain's Housing Decree

Royal Decree-Law 29/2026 focuses almost exclusively on rental protection, leaving out mortgaged households who make up the majority of families affected by the housing cost crisis. For them, the law changes nothing: their homes remain exposed to eviction without suspension or alternative housing.

The decree was created to address soaring housing costs. But its protections center on rentals. Most Spanish families struggling to pay for their home do not rent; they have a mortgage. For them, the regulation offers no change.

## Rentals dominate the law, mortgages left out

Spain's rental market shows the sharpest and most visible price hikes. This explains why new rules focus there. The problem is it leaves unprotected the largest segment of the population: mortgaged owners facing foreclosure due to job loss, over-indebtedness, or rising interest rates.

For these households, there is no eviction suspension or alternative housing. Their property remains as vulnerable as before the decree passed.

## Mortgage foreclosures rise double digits

Data contradicts any sense of calm. In **2025**, **31,416 mortgage foreclosures** were recorded, a **35.6%** increase year-on-year. In Q1 **2026**, foreclosures on primary residences grew **38.1%** annually.

**46.7%** of foreclosures started in Q2 2026 relate to loans signed between **2005 and 2008**, during the property bubble. Many such loans went through bank mergers and were sold to investment funds, which now demand full repayment.

## Euribor squeezes variable-rate mortgages

In September **2026**, the 12-month Euribor stood at **3.247%**, its highest level since July 2024. For an average variable mortgage of **€100,000**, this means costs rising by up to **€56 per month**, or **€672 per year**.

Delinquency rates are at historic lows, **1.6%**. Yet mortgage foreclosures grow at **35-38%** annually, concentrated in old loans sold to funds. These funds, having acquired non-performing debt, still have free rein to accumulate properties through judicial processes.

This is not the acute crisis of 2008. It is pogre deterioration simmering slowly. And regarding mortgages, the decree looks away. If your mortgage depends on Euribor or you face payment risk, consult a specialized lawyer before acting.