A large number of homeowners in Spain are expected to see their mortgage payments rise, it has been claimed.

According to a summary of the latest Euribor and Spanish mortgages by Spanish Property Insight, the move could place further pressure on the country's beleaguered housing market.

Indeed, those looking to buy real estate in Spain could find that the increased mortgage costs lead to further bargain homes coming onto the market, A Place in the Sun reported.

Mark Stucklin of Spanish Property Insight commented: "This is the sixth month in a row that new mortgage lending has fallen, a clear sign of trouble for the market. New mortgage lending has been falling since July and the latest fall comes on top of a slump of 16 per cent in September.

"Significantly fewer, smaller loans means a lot less money chasing property, putting further pressure on prices."

New mortgage lending in October fell by 24 per cent year on year to 39,542 home loans, and by 25 per cent compared to September, according to data supplied by the INE.