Spanish mortgage rates: fixed, variable or mixed, and how the Euribor works
Alveo Finance · Published 21 October 2026 · 5 min read · Lire en français · Leer en español
In short
In Spain, variable and mixed mortgages usually follow the 12-month Euribor. Choosing between fixed, variable and mixed comes down to who carries the interest rate risk: you or the bank.
A Spanish bank will offer you three options: a fixed rate for the whole term, a variable rate reviewed every year or every six months, or a mixed rate, fixed for a few years and then variable. Variable and mixed loans usually follow the 12-month Euribor. Your choice comes down to deciding who carries the risk of rising rates: you or the bank.
The three options
| Option | How the rate moves | Who it suits |
|---|---|---|
| Fixed | The same rate from the first month to the last. | You want to know every monthly payment in advance. |
| Variable | An index (most often the 12-month Euribor) plus a fixed margin, reviewed on set dates. | You accept payments that move, and you expect the index to hold steady or fall. |
| Mixed | Fixed for the first years, then variable. | You want certainty at the start, when the capital you still owe is at its highest. |
The 12-month Euribor, the index behind variable loans
The Euribor is the rate at which large eurozone banks lend to each other. The 12-month Euribor covers one-year loans. In Spain, its monthly average is one of the official reference indices for mortgages, and the Banco de España publishes it every month.
In September 2026, the 12-month Euribor stood at 3.247%, against 2.954% in August 2026 and 2.172% a year earlier, in September 2025: a rise of just over one percentage point in twelve months.
How your variable rate is calculated
Your rate = 12-month Euribor + the margin set in the contract. The margin stays the same for the life of the loan. At each review, the bank takes the index value published on the date set in the contract, adds the margin and recalculates the monthly payment.
What the law forbids
- A rate floor (cláusula suelo): since Law 5/2019, a variable-rate contract cannot set a lower limit on the rate, so when the Euribor falls, your rate follows it down.
- A negative rate: the same law states that interest cannot be negative. If the Euribor turns negative enough to wipe out your margin, your rate stops at zero.
What a rise in the Euribor does to your payment
On a variable loan, a rise in the Euribor feeds into your monthly payment at the next review and stays there until the review after. Between September 2025 and September 2026, the index gained just over one percentage point. For a resident paid in euros, the difference shows up in the household budget.
For a non-resident paid in pounds, dollars or another currency, it comes on top of the currency risk. If the euro also gains against your currency over the same period, you pay more in euros and need more of your own money to buy each euro.
The simulator works out the effect of such a rise on your own loan. It compares the monthly payment on a fixed, variable and mixed rate for your project in 3 minutes, and sends you a detailed PDF.
Early repayment: what the bank can charge
Law 5/2019 caps the compensation the bank can ask for if you repay all or part of the loan early:
| Loan type | Maximum compensation |
|---|---|
| Variable | 0.25% of the capital repaid during the first 3 years, or 0.15% during the first 5 years (the contract uses one of the two options). Nothing after that. |
| Fixed | 2% of the capital repaid during the first 10 years, then 1.5%. |
In every case, the charge cannot exceed the bank's real financial loss. If you expect to sell or repay within ten years, this point weighs in the choice of a fixed rate. For a mixed loan, the contract states which rule applies during the fixed period. Switching from a variable to a fixed rate during the loan costs at most 0.05% of the capital during the first three years, then nothing.
Rate discounts tied to other products
Spanish banks often advertise a reduced rate (tipo bonificado): the rate drops if you pay your income into the account, take their home insurance or life insurance, or a card. The law forbids them from imposing these products as a condition of the loan, but allows these combined offers as long as the bank shows you the difference with the offer without them. Compare both on total cost, because expensive insurance can cancel out the rate cut.
To compare two offers, look at the TAE (tasa anual equivalente), the Spanish name for the APRC (annual percentage rate of charge): it includes the fees and the products the bank requires. The TIN (tipo de interés nominal) shows only the interest rate.
How to choose
- Go for a fixed rate if a higher monthly payment after a review would strain your budget, or if your income is in a currency other than the euro.
- Look at a mixed rate if you plan to repay a large part of the capital in the first few years.
- Consider a variable rate if you have room in your budget and accept payments that change every year.
Official sources
- Law 5/2019 of 15 March on real estate credit agreements (BOE): article 17 (tied and combined selling), articles 21.3 and 21.4 (no rate floor and no negative rate), article 23 (compensation for early repayment and for switching to a fixed rate).
- 12-month Euribor as an official index: Order EHA/2899/2011, article 27 and Banco de España Circular 5/2012.
- Published values: Banco de España resolution of 1 October 2026 (September 2026), of 1 September 2026 (August 2026) and of 1 October 2025 (September 2025); Banco de España table of official mortgage reference rates.
Legal information. Alveo Finance Management, S.L. (tax ID B27611433), Calle Purísima 5, 33, 46001 Valencia, Spain. Mortgage credit intermediary registered with the Banco de España register of mortgage credit intermediaries under code E756 (registered on 6 July 2026), check it here. Supervisory authority: Banco de España. Non-tied intermediary; our advisory service is not independent within the meaning of Royal Decree 309/2019. Remuneration: a €500 processing fee, then 1.15% of the loan amount with a minimum of €3,490. We also receive a fee from the lending bank, shown in the FEIN. Complaints: finance@alveo.co, then the Banco de España Market Conduct Department. Professional liability insurance: Lloyd's Insurance Company, S.A. This article is for information: it is not a loan offer, which depends on the bank's creditworthiness assessment and binding offer.
