2026: A favourable time to purchase a first home, with government assistance and low interest rates

The 12-month Euribor has remained at its lowest level since November, standing at a provisional average of 2.22%, which means a slight drop in variable mortgage payments. This scenario of stable interest rates, together with new government subsidies for home purchases coming in 2026, make this year a real opportunity for those who want to take the step towards home ownership.

Why is now a good time to apply for a mortgage and try to buy?

The reduction in the Euribor means that monthly payments on variable mortgages will be lower, with an approximate saving of £180 per year for an average loan of £150,000. In addition, the European Central Bank is keeping interest rates low, which provides predictability and peace of mind for buyers.

But it is not only the mortgage market that is performing well. In 2026, access to housing is being boosted by a range of public subsidies that could make a real difference, especially for young people and large families.

In theory, these subsidies are beneficial, but will they be effective? Can we really access them?

Home purchase assistance in 2026: Andalusia

Throughout Spain, home purchase assistance is divided into public guarantees, tax subsidies and mortgage payment support. In Andalusia, the Garantía Vivienda Andalucía programme stands out, facilitating the granting of mortgages with a high percentage of financing for young people up to the age of 35. This means that banks can grant loans that cover a large part of the value of the property, reducing the need for high prior savings for the down payment.

In addition, Andalusia offers significant tax benefits, such as a reduction in Property Transfer Tax (ITP) to 3.5% for young people under 35 or large families, compared to the general rate of 7%. There are also rebates on Stamp Duty (AJD), with a reduced rate of 0.3% for subsidised housing, which further reduces the costs associated with the purchase.

These regional subsidies are in addition to the Government’s ICO guarantees, which allow up to 20% of the price of the property to be financed for young people and families with dependent children, although the two guarantees cannot be combined, so it is advisable to choose the most advantageous option according to your profile and location.

Other state subsidies and plans

The 2026-2030 State Housing Plan, with a budget of €7 billion, also promotes access to housing, especially in rural municipalities, with grants of up to €15,000 for young people under the age of 35. This plan seeks to facilitate youth emancipation and housing renovation, contributing to a more accessible and sustainable market.

Conclusion

If you are thinking of buying a home, 2026 presents a favourable scenario: stable and low interest rates, more affordable mortgage payments and a range of public aid that reduces economic barriers, especially for young people in Andalusia. Taking advantage of these conditions may be the key to stopping paying rent and taking the step towards home ownership with greater financial security.