Fixed or variable mortgage rate in Spain

In brief

Fixed-rate mortgage: the rate and the payment stay the same for the whole term of the loan, and you know the amount in advance. Variable-rate: the rate equals an index (usually Euribor) plus a fixed spread, and the payment is usually reviewed once a year or every six months [1][2].
Mixed-rate: the rate is fixed for an initial period and variable after that [1].
Ley 5/2019 protects borrowers who are individuals: variable-rate loans cannot have a minimum rate (floor), and the index must be objective and verifiable [5].
Before signing, the bank gives you the FEIN and the FiAE at least 10 calendar days in advance. The FEIN is a binding offer valid for no less than ten days [5].
Early repayment fees are capped by article 23: for variable-rate loans, up to 0.15% in the first 5 years or up to 0.25% in the first 3 years; for fixed-rate loans, up to 2% in the first 10 years and up to 1.5% after that [5].

What is the difference between fixed, variable and mixed rates?

Banco de España distinguishes three types of mortgage by rate. Choosing between them is a question of who bears the risk of rate changes: the bank or the borrower [1][2].

Type	How the payment changes	What you get	Risk
Fixed	Does not change for the whole term	A predictable payment	You don’t benefit when rates fall [2]
Variable	Reviewed, usually once a year or every six months	As a rule, a lower starting rate [1]	The payment rises when the index rises
Mixed	Fixed at first, then variable	Part of the term is known	Risk after the fixed period [1]

Which is better depends on the term, the amount and the safety margin in your budget. Banco de España does not name a universal choice: the best option is the one that matches your needs, and scenarios are worth testing in its simulators [2].

What makes up a variable rate?

The rate equals the value of the index plus the spread agreed in the contract. Banco de España gives the example “Euribor + 1%”: Euribor is the index, 1% is the spread [1]. Euribor is described as the most common index for mortgages, but the law also allows other indices if they meet the conditions: clear, accessible, objective, verifiable by the parties and the authorities, calculated on market values and independent of the bank or of agreements with other banks (article 21.2 Ley 5/2019) [5].

The bank may not change the rate to the borrower’s detriment without the parties’ written consent, and any change must follow an objective index (article 21.1). A minimum rate (cláusula suelo) is prohibited for variable-rate loans, and the interest rate cannot be negative (article 21.3 and 21.4) [5][1].

What must the bank show you before signing?

Article 14 of Ley 5/2019 requires the bank or intermediary to give the borrower, at least ten calendar days before signing [5]:

FEIN (Ficha Europea de Información Normalizada): the bank’s binding offer, valid until signing and for at least ten days.
FiAE (Ficha de Advertencias Estandarizadas): a list of the material terms, including indices, minimum rates, early enforcement on default and the allocation of costs.
For variable-rate loans, a separate document showing payments under different rate scenarios.
A draft contract with a full list of costs.

Banco de España describes this document as a calculation under three scenarios (the rate stays the same, rises, falls) and stresses that it is an illustration, not a forecast [4]. If the rate is variable, the FEIN also shows an additional TAE in case of a significant rise in the rate [5].

Can you switch the rate type later or repay the loan early?

The law encourages switching from a variable to a fixed rate: a novation or a change of lender (subrogación) that sets a fixed rate for the rest of the term, or at least 3 years of fixed rate, carries a limited fee: up to 0.05% of the amount repaid early in the first three years, and after that the bank may not charge a fee. If no capital is repaid early, no fee is charged at all (article 23.6) [5].

For ordinary early repayment, the limits are as follows [5]:

Loan type	Period	Maximum fee on the amount repaid
Variable	first 5 years (option a)	0,15 %
Variable	first 3 years (option b)	0,25 %
Fixed	first 10 years	2 %
Fixed	after 10 years	1,5 %

For a variable rate, the bank chooses one of the two options, and the fee cannot exceed its financial loss. The consolidated BOE text contains a note that the fee regime is suspended under a temporary Real Decreto-ley; we have not checked its limits, so compare the contract terms with the bank and a gestor [5].

What depends on your case

We do not name banks, rates or tariffs, and we do not recommend a rate type. Mortgage terms for non-residents are set by the bank based on your ability to repay: more in the article mortgage for a non-resident in Spain. We do not make Euribor forecasts. Compare the FEIN from several banks and use the Banco de España simulators [2].

On taxes when buying a home: taxes when buying a flat. The bank also looks at your credit history: how it is built in Spain. If you are only planning your move, the general procedure is described in residence permit in Barcelona. On an account for payments: opening an account.

Frequently asked questions

Which is better in Spain: a fixed or a variable-rate mortgage?

There is no universal answer. Banco de España says the best one is the one that matches your needs: a fixed rate gives a predictable payment, a variable rate usually starts lower but the payment changes. Test both options in the simulator and on the bank’s FEIN. [1][2]

What are Euribor and the spread?

Euribor is the most common index for variable-rate mortgages. The loan rate equals the index plus the spread agreed in the contract, for example “Euribor + 1%”. The index affects the payment; the bank does not change the spread unilaterally. [1][5]

How often is a variable rate reviewed?

Usually once a year or every six months. The exact period is stated in the contract and in the FEIN. The bank may not change the rate to the borrower’s detriment without written consent, and any change must follow an objective index. [1][3][5]

Can a minimum rate (cláusula suelo) be set?

No, under Ley 5/2019 a minimum rate cannot be set for variable-rate loans (article 21.3), and the interest rate cannot be negative. This protects the borrower and applies to loans signed under this law. [5]

How much can you be charged for repaying a mortgage early?

Under article 23 of Ley 5/2019, for a variable-rate loan up to 0.15% in the first 5 years or up to 0.25% in the first 3 years; for a fixed-rate loan up to 2% in the first 10 years and up to 1.5% after that, and never more than the bank’s loss. Check the note on temporary measures. [5]

What must the bank give you before you sign the contract?

The FEIN, the FiAE and the draft contract at least 10 calendar days in advance, plus, for variable-rate loans, a separate document showing payments under different rate scenarios. The FEIN is the bank’s binding offer for at least ten days. [5][4]

Official sources

Sources reviewed on 02.10.2026. Consolidated texts and government reference pages are for information only: applying the law depends on official publications, amendments and the specific circumstances. Reviewed by lawyer Francisco Romero Jiménez (ICAB 33641) on 21.10.2026.

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ReloVictory · Sources reviewed 02.10.2026 · Not a substitute for individual legal advice.