Investment approach
Fixed, variable or mixed mortgages in Spain
In July 2026, 62.3% of new home mortgages in Spain were signed at a fixed rate. How the three types differ, what the law requires of the bank and how to compare payments.
A mortgage in Spain is taken at a fixed, variable or mixed rate, and the type determines who bears the risk of rate changes: the bank or the borrower. According to the INE (Spain's national statistics institute), in July 2026, 62.3% of new home mortgages were at a fixed rate and 37.7% at a variable rate; the average initial rate was 3.03% for fixed and 2.97% for variable (INE, Estadística de Hipotecas). A mixed rate combines a fixed period with a variable remainder of the term.
How the three rate types differ
A fixed rate (tipo fijo) does not change over the whole term, and the risk of rates rising is borne by the bank. A variable rate (tipo variable) is made up of an official index, usually 12-month Euribor, and a constant spread, and is reviewed every 6 or 12 months. A mixed rate (tipo mixto) gives a fixed rate for the first years and then moves to the index plus a spread.
| Feature | Fixed | Variable | Mixed |
|---|---|---|---|
| Rate | One for the whole term | Index plus spread, reviewed on a schedule | Fixed for the first years, then index plus spread |
| Who bears the rate risk | The bank | The borrower | The bank during the fixed period, then the borrower |
| Limit on the early repayment fee | 2% in the first 10 years, 1.5% after | 0.15% over 5 years or 0.25% over 3 years, then 0% | By the limits for the fixed and variable segments |
| What to look at in the offer | The rate and the TAE (annual equivalent rate, Spain's APR) | The index, the spread, the review frequency | The length of the fixed period and the formula after it |
The fee limits are set by art. 23 of Ley 5/2019 separately for fixed and variable loans and their segments (BOE); more in the article on early repayment.
What the law requires of a variable and a mixed rate
Ley 5/2019 limits what a bank may write into the formula of a variable rate. The index must be objective, verifiable and independent of the bank, a floor on the rate in the variable part is prohibited, and the interest cannot become negative (art. 21). Where to find the official index value is explained in the article where to find the official Euribor.
Before signing, the bank must provide at least ten calendar days in advance the FEIN (Ficha Europea de Información Normalizada), the FiAE warnings sheet and, for a variable rate, a separate document with payments under different rate scenarios (art. 14). The borrower then meets the notary in person, who checks that the documents were received on time, goes through the terms of the FEIN and FiAE with them and records this in a notarial act (acta) no later than the day before signing (art. 15). The bank's scenario document is precisely a ready-made stress test for a variable and a mixed rate.
How to compare payments: a worked calculation
Worked example, not a forecast. A loan of 250,000 € over 30 years, annuity. The fixed rate is taken at the level of the INE's average initial rate for July 2026, the variable's spread is 0.75% and the Euribor index for September 2026 is 3.247% (Banco de España). The terms of the mixed rate are notional.
| Option | Rate | Monthly payment |
|---|---|---|
| Fixed | 3.03% for the whole term | about 1,058 € |
| Variable at today's index | 3.247% + 0.75% = 3.997% | about 1,193 € |
| Variable, index 1 percentage point higher | 4.997% | about 1,342 € |
| Mixed, first 5 years | 2.75% | about 1,021 € |
| Mixed after 5 years, index as today | 3.997% on a remaining debt of about 221,000 € | about 1,167 € |
| Mixed after 5 years, index 1 percentage point higher | 4.997% | about 1,293 € |
In this example the variable rate is more expensive than the fixed one already at the current index, and the mixed one wins only in the first five years. Your own option, with a different amount and term, is easy to run in the calculator.
Can the rate type be changed later
Yes, through a novación (amendment) with the same bank or a subrogación (switch) to another bank. If a variable rate is changed to a fixed one or to one with a fixed first period of at least three years, the fee is capped at 0.05% of the amount repaid in the first three years of the loan and after that there is none (art. 23.6 Ley 5/2019). But the new fixed rate will be the market rate on the date of the change, not on the date of purchase, and the bank may refuse.
Who each type does not suit
A variable rate does not suit a buyer whose budget cannot withstand the index-rise scenario in the bank's document, or someone with income in another currency: exchange rate swings add to the swings in Euribor. A non-resident should also bear in mind that banks assess their application more strictly; see the article on a mortgage for a non-resident.
A fixed rate suits less someone who plans to repay early in the first ten years: the fee cap of 2% is higher than for a variable. A mixed rate does not suit someone who chooses it only for the low payment of the first years without working out the payment after the switch. How the rate affects renovate-and-resell projects is covered in the article on variable and fixed rates.
Questions and answers
Which is better in Spain: a fixed or a variable mortgage?
There is no single answer. A fixed rate gives a predictable payment, a variable one depends on Euribor. In July 2026 the average initial rate according to the INE was 3.03% for fixed and 2.97% for variable, and after that the variable one moves with the index.
What is a mixed mortgage?
It is a loan where a fixed rate applies in the first years and then the index plus a spread. The offer must state expressly the length of the fixed period and the rate formula after it.
Can a bank set a minimum rate on a variable-rate mortgage?
No. Art. 21 of Ley 5/2019 prohibits a floor on the rate in the variable part, and the interest cannot be negative even with a negative index.
Is the bank obliged to warn about the risks of a variable rate?
Yes. At least ten days before signing the bank provides the FEIN, the FiAE and a document with payment scenarios, and before signing the notary checks that the documents were received and advises the borrower.
How much does it cost to switch from a variable to a fixed rate?
The fee for such a change is no more than 0.05% of the amount repaid in the first three years of the loan and nil after that. The bank will offer the new rate at the market level on the date of the change.
