Fixed, variable, and mixed mortgages in Spain: how to choose the best option

When you buy a property in Spain with a mortgage, one of the first decisions you face is the type of interest rate. Spanish banks offer three options: fixed, variable and mixed. Each one suits a different budget, attitude to risk and long-term plan, and the right choice can mean a difference of thousands of euros over the life of the loan.

In short, a fixed-rate mortgage keeps the same repayment for the whole term, a variable-rate mortgage moves up or down with the Euribor, and a mixed-rate mortgage combines a fixed period at the start with a variable rate afterwards. Fixed rates are currently the most popular choice: according to Spain’s National Statistics Institute (INE), 62.3% of new home mortgages registered in July 2026 were fixed-rate.

Below, we explain how each type works, compare their advantages and drawbacks, and cover the costs and rules you need to know before you sign.

How fixed, variable and mixed mortgages work in Spain

The difference between the three types lies in how the interest rate is set and whether it can change during the life of the loan. This is how each one works.

Fixed-rate mortgages

With a fixed-rate mortgage (hipoteca a tipo fijo), the interest rate stays the same from the first instalment to the last. Your monthly repayment does not change unless you make an early repayment, so you know from day one exactly how much the loan will cost you. In July 2026, the average starting rate for new fixed-rate home mortgages in Spain was 3.03%, according to the INE.

Variable-rate mortgages

A variable-rate mortgage (hipoteca a tipo variable) has two parts: a reference index, almost always the 12-month Euribor (Euro Interbank Offered Rate), plus a fixed margin agreed with the bank, known as the diferencial. The rate is reviewed at set intervals, usually every 6 or 12 months, and your repayment rises or falls in line with the Euribor at each review. It is common for banks to apply a fixed rate for the first 6 or 12 months before the first review.

Mixed-rate mortgages

A mixed-rate mortgage (hipoteca mixta) starts with a fixed interest rate for a set number of years, agreed when you sign. When that period ends, the loan switches to a variable rate, linked to the Euribor plus a margin, until the debt is repaid. The length of the fixed period varies from one bank to another, so compare how long the stability lasts as well as the rates themselves.

Fixed, variable and mixed mortgages compared

This table summarises the main differences between the three types of mortgage:

Advantages and drawbacks of each mortgage type

No type of mortgage is better in every situation. Each one has strengths and weaknesses that matter more or less depending on your budget, your plans and how much uncertainty you are comfortable with.

Fixed-rate mortgages: pros and cons

Advantages:

• Your repayments stay the same for the whole term
• Rises in the Euribor do not affect you
• Budgeting and long-term planning are straightforward

Drawbacks:

• If market rates fall, you keep paying the rate you signed unless you renegotiate or move your mortgage
• The legal limits on early repayment fees are higher than for variable loans
• The starting rate can be slightly higher than a variable rate at the time of signing

Variable-rate mortgages: pros and cons

Advantages:

• Your repayments fall when the Euribor falls
• The starting rate is often slightly lower than a fixed rate
• Early repayment fees are lower, and after the first 3 or 5 years there are none

Drawbacks:

• Your repayments can rise significantly if the Euribor goes up
• Long-term planning is harder because you do not know your future repayments
• You need a margin in your budget to absorb possible rises

Mixed-rate mortgages: pros and cons

Advantages:

• Your repayments are stable during the first years of the loan
• After the fixed period, your repayments can fall if rates are lower
• They suit buyers who plan to sell, repay early or refinance before the fixed period ends

Drawbacks:

• Once the fixed period ends, your repayments become less predictable
• If rates fall during the fixed period, you do not benefit until the switch
• Conditions vary widely between banks, which makes offers harder to compare

How the Euribor and today’s market affect your choice

The Euribor is the main factor behind any variable or mixed mortgage in Spain. After falling from 2024 to mid-2025, it has risen steadily through 2026: the 12-month Euribor monthly average reached 3.247% in September 2026, compared with 2.172% a year earlier.

This has two practical consequences. If you already have a variable mortgage, your repayment is likely to rise at your next review. If you are about to sign, the gap between fixed and variable offers is currently small: in July 2026, the average starting rate was 3.03% for fixed-rate home mortgages and 2.97% for variable-rate ones, according to the INE.

Nobody can predict interest rates with certainty. In our experience, a more useful question than “where will rates go?” is “how much could my repayment rise without putting pressure on my finances?”. Your answer usually points you towards the right type of mortgage.

How much the interest rate changes your repayments: an example

To see what a change in rate means in practice, imagine you buy a second-hand property in the Valencian Community for €250,000. You pay 30% from your savings and borrow the remaining 70%, €175,000, over 25 years. Remember that the expenses and taxes on the purchase of a property in Spain, such as transfer tax and notary fees, come on top of your deposit.

^{Note: Repayments calculated with the French amortisation system (standard in Spain). Figures assume the rate stays the same for the whole term}

On this loan, each 0.5 percentage point adds around €45 to €50 to the monthly repayment and between €13,000 and €15,000 in interest over 25 years. With a fixed rate, you lock in one row of this table for the whole term. With a variable rate, your repayment can move between rows at every review.

You can run your own figures with the mortgage simulator on each of our property detail pages.

How to choose the right mortgage for you

There is no single best mortgage, only the one that fits your situation. These factors will help you decide:

• Your budget: if a rise of €100 or more a month would put pressure on your finances, a fixed rate gives you certainty
• How long you plan to keep the loan: if you expect to sell, repay or refinance within a few years, a mixed or variable rate can cost you less overall
• Your attitude to risk: a variable rate rewards you when rates fall but exposes you when they rise
• Your residency status: as a non-resident, your options may be more limited, as we explain below
• The full cost of each offer: compare the APR (TAE, tasa anual equivalente), fees and linked products, not only the headline interest rate

Switching from a variable to a fixed-rate mortgage

If you have a variable mortgage and the Euribor is rising, you can change it to a fixed or mixed rate. There are two ways to do this:

• Novation (novación): you agree the change with your current bank, which modifies the conditions of your existing mortgage
• Subrogation (subrogación): you move your mortgage to another bank that offers you a fixed or mixed rate

Spanish law keeps the cost of this change low. As the Banco de España’s 2024 supervision report explains, banks cannot charge a fee for changing a mortgage from variable to fixed. If you move your mortgage to another bank during the first 3 years of the loan, the compensation is capped at 0.05% of the capital repaid, and after 3 years there is no charge. The same treatment applies if you switch to a mixed rate with a fixed period of at least 3 years.

Before you accept, compare the new rate with what you currently pay, check which linked products the offer requires to keep its discounts, and ask who covers the notary and registry costs of the change.

Mortgage costs in Spain: what you pay and what the bank pays

Since June 16, 2019, when Ley 5/2019 (the law that regulates property loans in Spain) came into force, the costs of setting up a mortgage are split between you and the bank. According to the Banco de España’s guidance on mortgage costs:

• The bank pays: the notary fees for the mortgage deed, the Land Registry fees, the gestoría (the agency that handles the paperwork) and the stamp duty on the mortgage, AJD (Impuesto sobre Actos Jurídicos Documentados)
• You pay: the property valuation (tasación) and any copies of the deed you request

These rules apply only to the mortgage. The taxes and fees for buying the property itself are separate.

Banks may also charge an arrangement fee (comisión de apertura). If they do, it must be a single fee that covers the study, processing and granting of the loan, and some banks do not charge one at all.

If you want to repay part or all of your mortgage early, the limits set by Ley 5/2019 cap the fee the bank can charge:

• Fixed-rate mortgages: up to 2% of the amount repaid in the first 10 years, and up to 1.5% after that
• Variable-rate mortgages: up to 0.25% in the first 3 years or up to 0.15% in the first 5 years, depending on what you agree with the bank; after that period, there is no fee

In every case, the fee cannot exceed the financial loss the bank actually suffers. These are maximums, so the fee in your contract may be lower.

If you repay the loan in full, the mortgage remains recorded at the Land Registry until it is formally cancelled, a step explained in what to do when a mortgage is paid off in Spain.

Most Spanish banks also offer a lower interest rate (bonificación) if you take out other products with them, such as home or life insurance, a salary transfer or a pension plan. The bank cannot make the mortgage conditional on buying these products, so weigh the cost of each one against the saving on the rate, and check whether you lose the discount if you cancel any of them later.

Mortgages for residents and non-residents in Spain

Your tax residency also affects the conditions you can expect. Non-residents can get a mortgage in Spain, but banks typically lend them less: usually 60% to 70% of the property’s value (the loan-to-value or LTV ratio), compared with up to 80% for residents. As a non-resident, this means you need a larger deposit.

Non-residents may also face slightly higher interest rates, shorter terms and more paperwork, such as proof of income and assets in their home country and an NIE (Número de Identidad de Extranjero). Some Spanish banks have teams that work in English and other languages, and handle much of the application online. Before you apply, it helps to understand how securing a Spanish mortgage as a non-resident works, from the documents banks ask for to the terms they usually offer.

Some buyers also weigh a Spanish mortgage against other options, such as borrowing in their home country or releasing equity from an existing property. Each of these is covered in how to finance an overseas property in Spain.

Putting your mortgage choice into practice

Ask several banks for offers and compare them on the same basis, which is much easier once you know the key terms used in Spanish mortgages. Before you sign, Spanish law gives you time to review the binding offer, known as the FEIN (Ficha Europea de Información Normalizada), and you meet the notary beforehand to resolve any doubts free of charge.

Once you know which type of mortgage suits you and how much you can borrow, you can focus on properties for sale in Spain that match your budget, filtered by price, location and property type. Every step that follows, from the reservation contract to the signing at the notary, is explained in the buying in Spain section.