According to the May 2025 barometer from the Sociological Research Center (CIS),housing is the primary concern for Spaniards. The National Statistics Institute (INE) data indicates that housing represents the most meaningful expense for Spanish households. For many, buying a home means taking on a mortgage lasting over 30 years, often extending into retirement. Now, some are considering pushing that limit even further.

With little room to extend mortgage durations, the only way to offset rising housing costs would be to increase monthly payments, which elevates the risk of defaults. At the V edition of the big real estate day, real estate promoters suggested a solution: 70-year mortgages rather of the conventional 30-year terms.

The Escalating Mortgage Trend

Longer and longer mortgages. A supply-demand imbalance in urban areas, coupled with pressure from holiday rentals, has driven up housing prices. INE data shows that the average mortgage in March 2025 was 156,698 euros, up from 137,049 euros in March 2024.

To offset these increases, new mortgages are extending their terms, averaging 24.47 years in 2023, according to the Bank of Spain. It is becoming increasingly common to see mortgages of 30 years or longer as buyers struggle to afford higher monthly payments.

“Who says that 70 year old mortgages will be seen.”

So, how can prospective buyers manage rising housing prices? According to real estate promoters at a forum organized by The economist, 70-year mortgages may become a reality.

The Risks of Multi-Generational Debt

Two lives to pay the mortgage. Instead of addressing construction costs or land availability to control housing prices, real estate promoters are shifting the responsibility to the financial system. “This will continue until the body endures. It will continue to stress until there is no ability to pay,” said Ignacio Moreno, CEO of Aurora Homes, in The economist.

70-year mortgages pose significant credit risks for banks, as they would likely be paid off by the borrower’s children or heirs. This also increases credit costs for customers due to the accrued interest over such an extended period.

With the banks that do not count. Banking entities are hesitant to increase lending for home purchases due to economic uncertainties related to US tariff policies.

The European Central Bank’s interest rate cuts have lowered mortgage prices, leading to increased loan activity in 2025. INE data shows 42,831 new mortgages were signed in March 2025, compared to 29,641 in March 2024.however, banks have not improved mortgage product conditions, with the average interest rate remaining at 2.97% in the last month.

Inherited mortgages. The concept of inherited mortgages is already a reality in cases of succession.Heirs assume mortgages as part of the inherited debt, with options to liquidate the mortgage using the inherited assets (inheritance for the benefit of inventory).

When an inheritance is received,both assets and liabilities are transferred. an heir can assume the mortgage, and the bank will reassess the credit risk, potentially requiring greater guarantees or offering better terms based on the heir’s financial situation.

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Image | UNSPLASH (JOEMI BRAZIER)