Obtaining bank financing in Spain is becoming increasingly expensive and, in certain cases, also more difficult. Banks have tightened the conditions applied to new loans during the third quarter of 2026, mainly due to the increase in interest rates and greater concern about the applicants' ability to pay. The situation affects both families and companies, although the restrictions are especially visible in consumer loans, habitually used to finance the purchase of vehicles, home renovations, appliances or personal expenses.
This is stated in the latest Bank Lending Survey of the Banco de España, published on October 27, which analyzes the evolution of the credit market between July and September. The report reveals that institutions have raised the cost of loans in the three segments studied: business financing, mortgages and consumer loans. However, there is an important difference: while approval requirements remained practically stable for companies and mortgages, banks did slightly tighten the criteria for granting personal loans and other loans to households.
The change could intensify during the last quarter of 2026. The financial institutions surveyed anticipate new restrictions for family financing, both in mortgages and consumer loans, while they expect loan demand to continue falling. The scenario is conditioned by the rising cost of financing and by greater caution in the face of economic risks.
Banks tighten the conditions for granting personal loans
Personal loans and consumer loans are the ones that are experiencing the clearest tightening of lending requirements in Spain. According to the Banco de España, financial institutions have slightly raised their requirements during the third quarter due to a greater perception of the risk of default and the deterioration of some credit quality indicators.
This means that entities are paying special attention to applicants’ ability to pay back the money. Before approving a transaction, banks can examine job stability, regular income, outstanding debts, payment history, and the proportion of the salary that would be allocated to monthly installments. These analyses were already part of the usual solvency assessment procedures, but they gain greater relevance when entities perceive an increase in risks.
The survey also notes that the percentage of banks that recorded more rejected applications in the consumer credit segment increased slightly, while in mortgages and business loans hardly any changes were observed in this indicator. Therefore, tightening does not mean that all entities have stopped granting financing, but rather that some customers may find greater difficulties in obtaining approval or receiving less favorable offers.
The phenomenon is also observed across the eurozone. According to the European Central Bank (ECB), a net percentage of 14% of the surveyed entities declared having tightened the criteria for granting consumer credit during the third quarter, a trend that has been maintained since 2022. This is an indicator of the difference between banks that tighten and banks that loosen their requirements, not of the percentage of loans rejected.
More expensive mortgages: what changes for those who want to buy a home
The mortgage situation presents a particularity. Spanish banks kept mortgage approval criteria stable between July and September, according to the Bank of Spain, but they did tighten the economic conditions of new contracts due to the rise in interest rates.
This difference is fundamental for those who are looking for a home. The fact that lending criteria have not changed in a generalized way does not mean that financing continues to cost the same. A higher interest rate makes monthly installments more expensive and increases the total amount that the buyer will have to repay, which can reduce the amount that a family is in a position to request without compromising their household finances.
The entities continue to assess factors such as net income, employment stability, existing loans, available savings and the appraisal value of the property. In certain cases they may request additional guarantees, although the latest survey does not show that there has been a widespread requirement for more sureties or a uniform reduction in financing percentages.
The main change could come over the next few months. Banks expect to tighten mortgage lending criteria in the fourth quarter of 2026, an expectation that will still have to be confirmed with the corresponding data for year-end.
The rise in interest rates makes loans more expensive in Spain
The main reason for the tightening of banking conditions is the increase in the cost of financing for the entities themselves, which have passed part of that increase on to new credit contracts. According to the Banco de España, the interest rates applied to loans increased during the third quarter for both companies and households.
This evolution is related to the ECB monetary policy context, which raised its deposit facility reference interest rate in September from 2.25% to 2.50%. The decisions of the European body influence the banks' financing costs and can end up affecting the offers received by consumers.
However, not all rate increases are passed on immediately or identically to all loans. The impact depends on whether the credit has a fixed or variable interest rate, its duration, the agreed conditions and the commercial policy of each entity. In the case of variable mortgages, the revisions are linked to the index established in the contract, usually the Euribor, so the effects may occur at different times.
The Banco de España also points out that the access conditions of Spanish entities to the financing markets worsened during the third quarter, both in retail financing and in much of the wholesale markets. Banks expect this situation to continue during the last months of the year, which helps explain their expectations of greater credit caution.
Fewer mortgage and loan applications: why demand is falling
The tightening of financing coincides with a decrease in the interest of families and companies in requesting borrowed money. The demand for credit fell in the three segments analyzed during the third quarter of 2026, although the setback was especially intense in mortgages intended for the purchase of housing.
According to the Bank of Spain survey, the banks identify the highest level of interest rates as the main reason for this decline. In the case of mortgages, the worse outlook for the real estate market also plays a role, which can lead some buyers to delay the decision to buy a home.
The ECB report reflects that Spain is among the countries where mortgage demand has decreased the most. Specifically, the net percentage of entities that recorded a drop in applications reached 40% in Spain, compared with 27% in the eurozone as a whole. This figure does not mean that the total number of mortgage applications fell by 40%, but rather that it represents the balance of responses from banks that detected a reduction versus those that observed an increase.
As for companies, the lower demand for financing was concentrated in small and medium-sized companies and in long-term loans, while large companies recorded a slight increase in applications. The approval criteria for business financing remained stable in Spain, although the economic conditions of the loans also became more expensive.
What requirements does the bank review before granting a loan
In this scenario, people who need financing will have to pay special attention to their economic situation before submitting the application. The Bank of Spain recalls that entities are obliged to assess the customer's solvency, a procedure that makes it possible to check whether they have sufficient capacity to repay the money within the established period.
Among the main aspects that banks may analyze are:
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Income and job stability: pay slips, type of contract, seniority in the job, or professional income in the case of self-employed workers.
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Level of indebtedness: mortgages, personal loans, vehicle financing, and other outstanding financial obligations.
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Credit history: compliance with previous payments and possible incidents related to debts.
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Repayment capacity: proportion of income that will be allocated to paying installments, taking into account the household’s usual expenses.
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Guarantees and savings: available assets, initial contribution, and, where applicable, guarantees or other collateral.
To carry out these checks, entities may consult the Central de Información de Riesgos del Banco de España (CIRBE), a database that collects information on clients’ loans, credits, guarantees, and collateral. This registry is not a list of defaulters, but it makes it possible to know a person’s accumulated debt and assess the risk of granting them additional financing.
The Banco de España reminds citizens that they can consult their own CIRBE risk report free of charge, a useful option to check what financial information is recorded in their name and request the correction of possible errors.
How to improve the chances of obtaining bank financing
Although banks are tightening certain conditions, applying for a loan does not necessarily mean receiving a refusal. The decision will depend on the customer’s financial situation, the amount requested, the repayment period, and each entity’s risk policy.
One of the main recommendations is to review existing debts before requesting new financing, since having too many monthly payments can reduce the repayment capacity that the bank deems appropriate. It is also advisable to present up-to-date work and financial information and to calculate in advance how much money could be allocated to the new installments without compromising essential expenses.
Another important aspect is comparing the conditions offered by different entities. The Banco de España recommends paying special attention to the Annual Equivalent Rate (AER), since it makes it possible to compare the cost of different offers by taking into account interest and certain expenses and commissions. It is also advisable to check the total amount that will be repaid, the duration of the contract, and any possible linking conditions.
Extending the repayment period can reduce the monthly payment, but it normally increases the total interest paid on the loan. Therefore, financing that is apparently more comfortable is not always the cheapest. Likewise, quick-loan offers can present high costs, so it is advisable to examine the conditions before taking them out.
Banks foresee more restrictions for the end of 2026
The forecasts for the last quarter of the year point to the fact that access to credit could continue to become more complicated for Spanish households. The Bank Lending Survey indicates that entities expect to moderately tighten lending criteria for families, while they anticipate new falls in demand both in mortgages and in consumer loans and business financing.
For companies, Spanish banks foresee keeping approval requirements stable, although uncertainty over financing costs persists. Across the eurozone, the ECB expectations point to an additional tightening of criteria for companies, mortgages and personal loans, mainly driven by the perception of risks and economic conditions.
For now, the main difference is between paying more for a loan and finding greater obstacles to obtaining one. During the third quarter of 2026, the increase in interest rates affected all three financing modes, but the tightening of approval criteria in Spain was concentrated in consumer loans.
The situation could change over the coming months if the forecasts of financial institutions are fulfilled. Meanwhile, consumers who are thinking of applying for a loan should review their borrowing capacity, compare bank offers and take into account that current conditions may be less favorable than those available months ago.