ÌÇÐÄÆƽâ°æ

Mortgage interest rates in Europe soared in 2022 and remained elevated in the following two years. In many countries, this resulted in mortgage interest rates across the region more than doubling. In the fourth quarter of 2025, the average mortgage interest rate in the UK stood at *** percent. Spain had the lowest rate, at *** percent, while Hungary had the highest, at ***Ìý±è±ð°ù³¦±ð²Ô³Ù.

Why did mortgage interest rates increase?

Mortgage rates have risen as a result of the European Central Bank (ECB) interest rate increase. The ECB increased its interest rates to tackle inflation. As inflation calmed, the ECB cut rates, which allowed mortgage lenders to reduce mortgage interest rates.

What is the impact of interest rates on home buying?

Lower interest rates make taking out a housing loan more affordable, and thus, encourage home buying. That can be seen in many countries across Europe: In France, the number of residential properties sold rose in the years leading up to 2021, and fell as interest rates increased. The number of houses sold in the UK followed a similar trend.