Fixed, variable or mixed mortgage: how each one works and which one suits you

Choosing a mortgage is, for most people, the most important financial decision of their lives. Not only because of the amount of money involved, but because the terms you sign today will stay with you for 20, 25 or 30 years. And within that decision, there is one question that shapes almost everything else: fixed, variable or mixed mortgage?

In this guide we explain the types of mortgage that exist in Spain, how each one works, what risks and benefits it carries, and in which situation each option makes sense. Without unnecessary jargon and with the current market context.

💡 In a hurry? If you already know which type you want and just want to know how much you would pay, use the Hipotecalc mortgage calculator to simulate your fixed, variable or mixed payment in one minute.

Before we start: the TIN, the APR and the Euribor

To understand the three types of mortgage, it helps to be clear on three concepts:

• TIN (Tipo de Interés Nominal, the nominal interest rate): the “pure” interest the bank applies to the money lent. It does not include fees or costs.
• APR (TAE, Tasa Anual Equivalente): the real cost of the loan. It includes the TIN plus fees, linked products and other costs. It is the figure you should use to compare mortgages, because two offers with the same TIN can have a very different APR.
• Euribor: the reference index at which the main European banks lend money to each other. It is the key piece of variable and mixed mortgages. When it rises, your payment rises; when it falls, your payment falls.

An important note about the Euribor: what affects your mortgage is not the daily value that appears in the news, but the monthly average of the 12-month Euribor, which is what the bank applies at each review (usually annual or semi-annual).

---

Fixed-rate mortgage: the peace of mind of a constant payment

In a fixed-rate mortgage, the interest rate is agreed at signing and does not change over the entire life of the loan. Whichever month you pay, your payment will always be the same.

How it works

The bank offers you a locked-in TIN (for example, 2.5% over 25 years) and, from there, the payment is calculated once and stays the same. The Euribor can shoot through the roof or collapse, but it makes no difference to you: your bill doesn’t move.

Benefits

• Total predictability. You know exactly how much you will pay each month for decades. This makes planning the family budget much easier.
• Protection against rate rises. If the Euribor soars, you won’t even notice.
• Psychological peace of mind. You don’t have to keep an eye on ECB meetings or the index’s movements.

Risks and drawbacks

• You don’t benefit from falls. If the Euribor drops, your neighbour with a variable-rate mortgage will pay less than you while you stay the same.
• It usually starts at a somewhat higher rate than the initial rate of a variable, because you are “buying” long-term security.
• Early repayment fees. If you decide to pay early or switch banks, the law allows somewhat higher fees than on variable rates (although they are legally capped).

Who does it make sense for?

For those who value stability above all else, have tight or predictable incomes, and don’t want surprises. Also for those signing at a time of low or moderate rates who want to “freeze” them for the entire life of the loan.

👉 Simulate your fixed payment: calculate how much you would pay per month with a fixed-rate mortgage on Hipotecalc based on the term and the capital you need.

---

Variable-rate mortgage: the risk (and the opportunity) of the Euribor

In a variable-rate mortgage the interest rate is made up of two parts: a fixed spread that never changes (for example, +0.50%) plus the Euribor, which is updated at each review. In other words: Euribor + spread.

How it works

At signing, you usually have an initial period (the first few months) with a fixed starting rate. From then on, the bank reviews your payment periodically — usually every 12 months, sometimes every 6 — and recalculates the interest by adding the current Euribor to your spread. If the Euribor has risen since the last review, your payment goes up; if it has fallen, it goes down.

Benefits

• Low spreads. Variable-rate mortgages tend to offer the tightest spreads on the market.
• You benefit from falls. In a falling-Euribor scenario, your payments shrink automatically.
• Cheaper early repayment. The law caps early repayment fees at very low levels (and, in many periods, at zero).

Risks and drawbacks

• Uncertainty. You don’t know how much you will pay in three years’ time. Your payment depends on an index you don’t control.
• Exposure to rises. If the Euribor rises sharply — as happened in 2022 and 2023 — your payment can increase noticeably from one year to the next.
• It requires a certain financial cushion. It’s wise to have room in your budget to absorb a possible rise without stress.

Who does it make sense for?

For those who have the capacity to save and room to absorb rises, for those who plan to pay off a good part of the loan early (thereby reducing their exposure to the index), or for those betting on a scenario of stable or falling rates.

👉 Try different scenarios: with the Hipotecalc variable-rate mortgage calculator you can see how your payment would change if the Euribor rises or falls.

---

Mixed mortgage: a foot in each boat

The mixed mortgage is a hybrid: during an initial period it works like a fixed rate (constant interest, usually the first 5, 10 or 15 years) and, when that period ends, it starts behaving like a variable (Euribor + spread) for the rest of the life of the loan.

How it works

Imagine a 25-year mixed mortgage with a 10-year fixed period. For the first decade you pay a stable payment at a locked-in rate. From year 11 onwards, your payment starts being reviewed according to the Euribor, just like a variable.

Benefits

• Stability at the start, which is when you owe the most capital and when a payment rise hurts the most.
• Attractive starting rates. The initial fixed period is usually offered at competitive rates, often below a pure fixed rate over the same term.
• Flexibility. It gives you room to overpay during the “quiet” years and reach the variable period with less outstanding debt.

Risks and drawbacks

• The variable period remains an unknown. Nobody knows where the Euribor will be in 10 or 15 years’ time.
• It is harder to compare. With two different regimes, calculating its real cost means looking carefully at the terms of both periods, not just the initial rate.
• It can turn out expensive if you don’t overpay. If you reach the variable period with almost all the debt outstanding, much of the advantage is diluted.

Who does it make sense for?

For those who want security in the early years but expect to overpay or even sell before reaching the variable period. Also for those looking for a balance between the peace of mind of a fixed rate and the potential savings of a variable.

---

Quick comparison

	Fixed	Variable	Mixed
Payment	Constant for life	Changes at each review	Fixed at first, then variable
Depends on the Euribor	No	Yes	Only in the variable period
Predictability	Maximum	Low	Medium
Starting rate	Medium	Low (tight spread)	Low/medium in the fixed period
Risk of rises	None	High	Deferred to the variable period
Ideal if…	You prioritise stability	You tolerate risk / plan to overpay	You want a middle ground

🧮 Compare all three at once. Instead of imagining the numbers, enter them into the Hipotecalc calculator and compare the payment of a fixed, variable and mixed mortgage with your own figures.

---

The market context in 2026

As of mid-2026, the 12-month Euribor is moving at around 2.7%, after a cycle of sharp rises in 2022 and 2023 — with the odd geopolitical scare along the way, as we analysed in the Iran war and the Euribor — and a subsequent period of moderation. The European Central Bank is keeping its rates at contained levels and the market is not pricing in big moves in the short term, which has given the index a degree of stability.

In this scenario:

• Fixed-rate mortgages are once again very competitive, with attractive offers for those who prioritise predictability.
• Variable rates become more appealing if a downward trend in the Euribor takes hold, thanks to their tight spreads.
• Mixed mortgages remain popular for their low starting rates in the fixed period.

Bear in mind that specific rates change from month to month and from bank to bank. Before deciding, always compare the current offers at the time you are going to sign.

---

How to choose: questions you should ask yourself

There is no mortgage that is “better” than the others in the abstract. The best one is the one that fits your situation. Before deciding, ask yourself:

1. How much room do I have in my budget? If a payment rise would put you in trouble, a fixed rate will give you peace of mind.
2. How long do I plan to keep the mortgage? If you expect to overpay or sell soon, a variable rate or the fixed period of a mixed mortgage may pay off.
3. What is my risk tolerance? Some people sleep badly if their payment can change. That has a value too.
4. What linked products do they require? Insurance, salary deposits, cards… they can improve the rate, but they increase the APR. Examine them closely.
5. Have I compared the APR, and not just the TIN? It is the only way to compare like with like.

Frequently asked questions about the types of mortgage

Which is better, a fixed or a variable-rate mortgage?

There is no single answer: it depends on your profile. A fixed-rate mortgage is better if you prioritise peace of mind and want to always pay the same amount. A variable rate is better if you have room to save, can tolerate a changing payment and expect the Euribor to remain stable or fall. The key is to compare the APR of both with your real figures.

What is a mixed mortgage and who is it for?

It is a mortgage that starts with a fixed-rate period (usually between 5 and 15 years) and then switches to a variable rate. It mainly suits those who want stability in the early years — when they owe the most capital — and plan to overpay or sell before reaching the variable period.

How does the Euribor affect my mortgage?

The Euribor only affects variable-rate mortgages and the variable period of mixed ones. Your interest rate is Euribor + spread: when the Euribor rises, your payment rises at the next review; when it falls, your payment falls. Fixed-rate mortgages are not affected. The monthly average of the 12-month Euribor is applied, not the value of a specific day.

Can I switch from a variable to a fixed-rate mortgage later on?

Yes. You can do so through a novation (an agreement with your own bank) or a subrogation (transferring the mortgage to another bank with better terms). Spanish law caps the fees for this type of change, although it is worth calculating whether the savings outweigh the costs.

What should I look at when comparing mortgages?

Look at the APR (not just the TIN), the spread in the case of variable rates, the fees (arrangement, early repayment) and the linked products they require (insurance, salary deposits, cards), which improve the rate but increase the total cost.

In summary

• A fixed rate gives you certainty in exchange for giving up potential falls.
• A variable rate offers you low spreads and potential savings, in exchange for taking on the Euribor risk.
• A mixed rate tries to keep the best of both: stability at the start, openness to the market afterwards.

The right decision depends on your profile, your capacity to save and your future plans. And, in any case, on comparing properly: small differences in the spread, the APR or the fees translate, over 25 years, into thousands of euros.

The next step is simple: go to the Hipotecalc mortgage calculator, enter the amount and the term you need and instantly compare how much you would pay with a fixed, variable or mixed mortgage.

Notice: this guide is for information purposes only and does not constitute personalised financial advice. Terms and interest rates vary by lender and over time. Always check up-to-date offers and, if you need to, consult a mortgage adviser.