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Fixed vs. Variable Rate Mortgages in Spain
What do clients prefer today?
In recent months, we’ve seen a significant shift in the preferences of those seeking financing to purchase a home. As a mortgage broker, I notice every day how the choice between a fixed-rate or variable-rate mortgage has become one of the most important and complex decisions for my clients.
According to the latest data from Spain’s National Statistics Institute, more than 70% of mortgages signed in 2025 are fixed-rate. This clearly reflects today’s trend: buyers value the stability of monthly payments over the uncertainty generated by the Euribor and central bank rate movements. After a period of rapid interest rate hikes, many households now prioritise the peace of mind that comes with knowing exactly what they’ll pay for the duration of their loan.
That said, there’s still a profile of client showing renewed interest in variable-rate mortgages. In 2025, the 12-month Euribor — the benchmark for most variable mortgages in Spain — has settled at around 2.1% (its lowest level since 2022). Some believe the Euribor should remain stable or even decrease further in the medium term. For borrowers with a higher tolerance for risk—or those planning to make early repayments—a variable rate remains an attractive option that can bring substantial savings over the years.
In day-to-day practice, I see that the choice doesn’t only depend on market conditions but also on personal circumstances:
• Income profile: clients with strong job stability often lean toward variable rates if they want to maximise savings, while families with tighter budgets tend to prefer the certainty of fixed rates.
• Loan term: for very long-term mortgages, fixed rates are usually more appealing; for shorter terms, variable rates can be advantageous.
• Plans for mobility or resale: if a client expects to sell the home or refinance within 10 years, a variable rate can offer greater flexibility.
There’s no one-size-fits-all answer to whether a fixed or variable mortgage is better. The key to selecting the right option is to carry out a personalised analysis that considers both the market environment and the buyer’s individual circumstances.
As a mortgage broker, my role is exactly that: to guide clients so that, beyond the latest trend, they find the mortgage solutions best suited to their lives and financial goals.
Should you have any inquiries regarding the content of this article, or any other questions relating to mortgages in Spain, please do not hesitate to reach out to us for further information:
Patricia Nadal