Fixed, Variable, or Mixed Mortgage in Spain: What to Choose in 2025?

Note: This content is specific to the Spanish mortgage market.

If you are buying property in Spain, one of the biggest decisions is choosing the interest rate type. The landscape in 2025 is very different from just a few years ago.

1. Variable Rate (Tipo Variable)

Linked to Euribor + Spread (e.g., Euribor + 0.60%).

• Status: Currently risky and expensive. With Euribor hovering around 3-3.5%, your starting rate is effectively 4%.
• Verdict: Not recommended unless you are certain rates will crash soon.

2. Fixed Rate (Tipo Fijo)

You pay the same for 30 years.

• Status: Banks have raised prices. Finding a fixed rate below 3.2% or 3.5% is becoming difficult for non-residents or standard profiles.
• Verdict: Good for peace of mind, but you are paying a premium for it.

3. Mixed Rate (Tipo Mixto): The 2025 Winner

This product has exploded in popularity. You pay a Fixed Rate for the first 3, 5, or 10 years, and then it switches to Variable.

• Why is it cheaper? Due to the inverted yield curve, banks can offer 5-year fixed periods at 2.5% or 2.7%, much cheaper than the standard fixed or variable rates.
• Strategy: You secure a very low rate for the next 5 years (saving money immediately). When the variable period arrives, you can simply renegotiate or switch banks (subrogation) if market conditions have improved.

Conclusion for Expats

Don't default to what you know from back home. In Spain currently, the Mixed Mortgage (Hipoteca Mixta) offers the best balance of immediate savings and medium-term security.

👉 Compare Mixed vs Fixed Rates in Spain