We will provide information on what type of mortgage It matters more if the variable rate or the fixed rate. A question that many people ask and for which notaries can help.

to choose what mortgage loan If you are more interested in whether it is a fixed rate or a variable rate, you will have to understand and analyze the characteristics of each one, and take into account the conditions they offer. In addition to what each interest rate means, it is also important to know that different conditions are offered depending on the interest rate of choice. To make the right choice, you will need to take into account factors such as the term and fee, your financial prospects, and your personal situation. 

It should also be assessed whether we plan cancel the mortgage before its completion, with which it will be necessary to assess the possibility and its consequences when carrying out this type of operation.

Fixed rate interest

The fixed interest is the one that maintains the constant interest rate throughout the term of the mortgage loan and does not depend on external indices. Therefore, it will be the same throughout the life of the loan. 

The and advantages interest at a fixed rate are multiple. The mortgager will know from the moment he signs how much he will have to pay each month, since the monthly installments will always be the same, so he will not risk having to pay more if the reference index rises. In addition, interest is currently very attractive. 

However, fixed-rate interest also has drawbacks. Normally, banks offer a rate higher than that established at that time for variable-rate mortgages. Currently the Euribor is in negative numbers, so the fixed-rate interest is also very low. However, among the conditions that are established, the repayment terms are usually shorter, since they are not usually more than 30 years, and in general the fixed-rate mortgage has more commissions. For example, the early repayment of the loan is usually more expensive. 

Variable rate interest

Variable interest is the one that is reviewed periodically and adjusted to market conditions at any given time in accordance with some reference index, which is normally the Euribor. Therefore, being linked to a changing benchmark, interest will rise or fall based on market value. The rate will be reviewed annually or every six months, depending on what was contracted in the granting of the mortgage loan. 

Variable rate interest has advantage. At the time of contracting, the initial interest rate is usually lower than that of fixed-rate mortgages. It is convenient if the index trades low, as the Euribor currently does, which is in negative numbers. In addition, the conditions are usually more favorable, since longer repayment terms are usually offered, up to 30 years or more, and they have fewer commissions. 

However, the variable rate also has inconveniences, since if the interests rise, there is a risk of having to pay a higher fee. The installments are unstable, since as the interest depends on the Euribor, they can change in each review. Therefore, there is a danger that in the long term they may be more expensive, since if the Euribor rises a lot, the installments become more expensive, and this may mean having to pay more than with fixed interest. 

On what do I have to base my choice?

As we have described before, each type of mortgage has its advantages and disadvantages, so you will have to choose, based on your personal situation and your economic perspectives, which one will benefit you the most. In short, you will have to take into account objective aspects, such as the conditions of the mortgage or the predictions of the Euribor, and other more subjective ones, such as the degree of security that you require to be calmer. 

In the end, the decision will have to be made based on the tolerance you have for risk and the uncertainty you can withstand. If you are a person who does not want to risk and who prioritizes stability, the fixed-rate mortgage will give you the certainty without changes that you need, even if it means paying more interest in principle. If, on the other hand, you want to pay less interest, you don't mind taking risks and you are able to assume a significant rise in installments if the Euribor rises in the future, your best option may be a variable mortgage. In fact, forecasts suggest that the Euribor will remain low for a minimum of five years, so if what interests you is to return the money in a relatively short time, ten or fifteen years, currently the best option could be variable rate. 

In the end, the economic, social, family and psychological profile of the mortgagor plays a very important role. For example, an experienced entrepreneur who has the capacity to generate income on an increasing basis and intends to save and invest and make partial amortizations periodically, the variable rate may be more suitable. On the other hand, a couple of civil servants with a conservative investment profile could be an ideal candidate for a fixed-rate mortgage loan, since it offers the security of knowing what will be paid each month during the decades that the debt with the bank is maintained. 

Supplementary Recommendations

If you want to have more information about the formalization of a mortgage loan, you can read our transparency act article or about the documentation needed to formalize the loan. 

Interest rate news

December 30th 2022 Mortgage calculator: calculate your loan installment: EL PAÍS develops a calculator for the mortgage payment based on the variation of the Euribor Source: elpais.com
December 30th 2022 Euribor forecast in 2023 and 2024 - Get ahead of the rise!: Euribor forecast in 2023 and 2024 (updated): interest will close 2022 at very close to 3%, 2023 at 4,00% and 2024 at 2,51% Source: futurfinances.com
December 30th 2022 The Euribor closes 2022 breaking records and reaches its highest level since 2008: The Euribor closes 2022 breaking records and reaches its highest level since 2008 Source: elplural.com
December 30th 2022 The Euribor exceeds 3% in December and makes the average mortgage more expensive by 3.200 euros a year: The indicator to which most variable mortgages are referenced is at the highest level since December 2008 The increase in 2022 is the highest in history The Euribor exceeds 3% in daily rate for the first time in 14 years Source: diariodesevilla.es
December 30th 2022 The Euribor closes the year above 3%: the December value makes variable mortgages more expensive again: This Friday the daily rate closed at 3,291%. Fountain: elespanol.com
December 30th 2022 The Euribor closes December above 3%, its highest level since 2008: The 12-month Euribor, the index to which most variable mortgages in Spain are referenced, registered a monthly average in December Source: niusdiario.es
December 30th 2022 Variable mortgages become more expensive by 3.000 euros after raising the Euribor by 750% in the year: Variable mortgages become 3.000 euros more expensive after the 750% rise in the Euribor in 2022, an increase that will continue in the coming months Source: theobjective.com
December 30th 2022 The Euribor closes December at 3,018%, its highest level since 2008: For the first time in 14 years, the reference indicator for mortgages is above 3%, which will have disastrous consequences for the h... Source: eldebate.com
December 29th 2022 The Euribor will close 2022 above 3% and with increases of 2.700 euros in mortgages - Economía Digital: Within the great headaches of 2022 the rise of the Euribor can be included. This index, used to calculate the mortgages at the Source rate: economiadigital.es
December 29th 2022 Mortgages will extend the sharp rise in interest rates to at least spring: The Euribor will rise in December to close to 3% and will cause mortgage payments to become more expensive than in November. If the indicator does not loosen, payments will rise strongly at least in the first months of 2023 Source: lainformacion.com
December 29th 2022 The Euribor closes 2022 above 3% and the rise in mortgages will continue in 2023: "The year 2023 will be the year of three: the Euribor at 3%, rates around 3% and the fixed mortgage for good profiles also around 3%", says the director of iAhorro Mortgages, Simone Colombelli Source: information.es
December 29th 2022 The Euribor makes the end of the year bitter for the citizens of the Balearic Islands: This December the installments of variable rate mortgages will become more expensive. The Euribor will embitter the end of the year for the citizens of the Islands with a variable mortgage, since the main reference indicator will rise again in December. With a couple of days to go until the end of the month, the forecast is that it will close at 2,990 percent. In addition, the forecasts are not rosy at all and experts expect this upward trend to continue throughout 2023. Source: menorca.info
December 29th 2022 The Euribor closes the year at 3% and makes mortgages more expensive on average by 3.000 euros: The indicator places its average monthly rate at 3,005%, making some variable-rate mortgages more expensive by more than 3.000 euros a year Source: leonoticias.com
December 29th 2022 The Euribor closes the year at 3% and makes mortgages more expensive on average by 3.000 euros: The indicator places its average monthly rate at 3,005%, making some variable-rate mortgages more expensive by more than 3.000 euros a year Source: ideal.es
December 29th 2022 The Euribor closes the year at 3% and makes mortgages more expensive on average by 3.000 euros: The indicator places its average monthly rate at 3,005%, making some variable-rate mortgages more expensive by more than 3.000 euros a year Source: elcomercio.es
December 29th 2022 The Euribor reaches 3% on average in December, its highest level since 2008: The 12-month Euribor, the index to which most variable mortgages in Spain are referenced, has... Source: europapress.es
December 29th 2022 The mortgage firm rebounds in Cantabria by 5,8% despite a Euribor that has just shot up above 3%: Mortgage loans had plummeted in the summer months, but in autumn they have increased again Source: eldiariomontanes.es
December 28th 2022 The Euribor bitter the end of the year to the Balearic Islands: This December the installments of variable rate mortgages will become more expensive. The Euribor will embitter the end of the year for the citizens of the Islands with a variable mortgage, since the main reference indicator will rise again in December. With a couple of days to go until the end of the month, the forecast is that it will close at 2,990 percent. In addition, the forecasts are not rosy at all and experts expect this upward trend to continue throughout 2023. Source: last hour
December 27th 2022 The Euribor will shoot up to 3,5% during the first half of 2023: How much will the Euribor reach in 2023? It is the big question of the moment. As if it were a football pool, there are those who predict that it will be Source: Diariojuridico.com
December 26th 2022 The bank stops mortgage changes before the relief plan for vulnerable families is launched: On the eve of the entry into force of the plan of measures that will allow foreclosures to be avoided in exchange for intensifying the financial burden on households, both fixed-rate and variable-rate loans clearly exceed the 4% interest rate from which the courts raised the legality of contracts. Fountain: publico.es
December 23th 2022 More pain for mortgages: the Euribor shoots up to 3,2% and is close to 3% in the monthly rate: The Euribor continues with its upward climb. The index to which most variable-rate mortgages are referenced was located this Friday at 3,238% in its daily rate, reaching levels not seen for 14 years. Fountain: bagmania.com
December 23th 2022 248 Segovians change their mortgage in the middle of the Euribor escalation: The most widely used reference index has risen more than three points in the last year and has triggered the installments of mortgaged families with variable interest rates. Fountain: eldiasegovia.es
December 22th 2022 The mortgage firm advances 13,5% without caring about the rise in the Euribor: The average amount of loans to finance housing exceeds 149.000 euros with a new increase in variable rates Source: theprovinces.es
December 21th 2022 The Euribor exceeds 3%: How much will the mortgage cost you? | CALCULATOR: For a mortgage of 150.000 euros at 24 years with a rate of Euribor plus 1%, it will mean paying 3.492 euros more per year Source: elperiodico.com
December 21th 2022 Mortgage agreement: what they consist of and who benefits from the aid: The Government and the banking entities have reached an agreement in principle to alleviate the mortgage burden of more than a million homes after the rise in the Euribor. Fountain: rtve.es
December 21th 2022 Calculate how much your mortgage will rise in 2023 because of the Euribor: The European Central Bank sets the interest rates for mortgages. In July 2022 there was the first rise of the year due to inflation... Source: malagahoy.es
December 20th 2022 Mortgages up to 60% more expensive: the new Euribor data is not good news for families: Households do not stop receiving setbacks. First, the pandemic. Then the energy crisis. And now they face runaway inflation. And all this while the... Source: magnet.xataka.com
December 20th 2022 The Euribor exceeds 3% and threatens to raise variable mortgages more: The indicator reaches a level in its daily rate that it has not registered since December 2008 and will make housing loans in Gipuzkoa more expensive on average by 278 euros Source: diariovasco.com
December 20th 2022 This is how the mortgage market has changed in 2022: the Euribor registers a historic rise and more and more Spaniards are betting on changing their bank mortgage: The fixed mortgage is no longer the preferred option for banks, which raise their interest rates above 3% and are betting on the variable or mixed Source: lift emv.com
December 19th 2022 calculator | How much will your mortgage rise with the rise in the Euribor: The rise in interest rates will cause those who have to update the price of their variable mortgage an increase in monthly installments above 200 euros on average Source: eldiario.es
December 19th 2022 How long will the Euribor and mortgages continue to rise?: "Spain is going to have a worse time than Germany or Belgium": Pilar García De La Granja explains in La Linterna the reasons why Spain will be one of those that will suffer the most from the rise in interest rates Source: cope.es
December 16th 2022 Calculate how much your mortgage will become more expensive with the latest interest rate rise: With the fourth rate hike by the ECB, of 0,5% in December, variable-rate mortgages could become more expensive by up to 4.700 euros per year. Fountain: businessinsider.es
December 15th 2022 This is what you will have to pay for your mortgage with the Euribor at 3%: The Euribor continues without giving up, and the latest rise in interest rates by the ECB could take it up to 3% Source: elnacional.cat
December 15th 2022 This is how the new rise in ECB interest rates will affect mortgages: Analysts expect the Euribor to reach 3% by the end of December, which will make loans even more expensive Source: abc.es
December 15th 2022 The rise in the Euribor triggers early mortgage repayments to avoid paying more interest: The unstoppable rise of the Euribor triggers early mortgage repayments to avoid paying more interest. Fountain: okdiario.com
December 15th 2022 The effect that the fourth rate hike by the ECB will have on mortgages: The European Central Bank (ECB) continues to raise interest rates. The ascent this Thursday, the fourth consecutive since July, predictably if Source: uppers.es
December 15th 2022 Understanding ECB interest rates and mortgages – Fotocasa Life: We explain in a simple way how the interest rates of the European Central Bank affect the Euribor and variable mortgages Source: fotocasa.es
December 14th 2022 The "trick" of the Bank of Spain to know how much your mortgage will go up: With the exponential rise in interest rates, some mortgages have become more than €250 per month Source: laopiniondemalaga.es
December 13th 2022 Spaniards with a variable mortgage pay the highest Euribor in Europe: Banks take the one-year index, more expensive than 3 or 6 months, like other countries Source: lavozdegalicia.es
December 10th 2022 The Euribor stops the escalation but puts more pressure on mortgage payments - finanzas.com: The Euribor stabilizes at 2,8%, but it will increase the cost of mortgages between 3.000 and 6.000 euros more per year Source: Finanzas.com
December 10th 2022 This is the 'Idealista' service that allows you to save on the mortgage before the rise in the Euribor: The mortgage comparator allows you to find a mortgage with specific characteristics at the best price, despite the rise in the Euribor Source: tododisca.com
December 08th 2022 The rise in the Euribor especially affects mortgages in Portugal, Spain, Ireland and Italy: The ECB warns of the vulnerability of low-income households in these countries, where variable rates have traditionally been chosen Source: elpais.com
December 05th 2022 Why is the end of the year the best time to request a mortgage?: With how changing the macroeconomic situation is, it is best to sign a mortgage of around 2-3% TIN as soon as possible, rather than wait for next year, when offers will continue to become more expensive due to the rate hike Source: Diariodemallorca.es
December 04th 2022 The real face of escalating mortgages: "How do I explain to my children that I can't turn on the heating?": "My biggest expense goes to food. I don't buy clothes or leisure because I can't. Now with the light I start to look at the hours, I don't put the dishwasher on, I rush the washing machine more... I've... Source: elmundo.es
December 03th 2022 Is it better to bet on a fixed or variable rate mortgage?: It is increasingly difficult to decide whether to bet on a fixed or variable rate mortgage. Therefore, we give you some keys. Fountain: antena3.com
December 02th 2022 Euribor at 2008 levels: the percentage of mortgages that go to a fixed rate is already close to 50%: The main reference index for mortgage loans, the Euribor, has closed November rising to 2,828%, chaining eleven consecutive months of rise and marking a new maximum that has not been seen since December 2008. With this panorama, those with mortgages react applying changes in their loans and many of them decide to flee from the variable rate to protect themselves under the fixed interest. Fountain: bagmania.com
December 02th 2022 Black December for those with mortgages according to Euribor.com.es. The Euribor can break the level of 3% - Forbes Spain: (Information sent by the signatory company) December is going to be a key month for the Euribor in which it could exceed the psychological level of 3% Source: forbes.es
December 01th 2022 Calculate how much your mortgage will rise in the coming months with this simulator: The Euribor closed November at 2,83%, which will make mortgage loan installments more expensive by more than 30%, and the bank leads users towards the offer Source: elcorreo.com
December 01th 2022 The Euribor for November is close to 3% and makes mortgages more expensive: The increase in the housing loan increases 250 euros per month, and the increase in the ECB rates causes the benchmark to close the month at 2,829%, almost 3,5 points above the same period last year Source : Diariodeburgos.es
December 01th 2022 How to negotiate the best mortgage on the market before the rise in the Euribor, according to experts: The consecutive rises in interest rates by the European Central Bank (ECB) to contain inflation in the euro area have had a direct impact on the Euribor, which is skyrocketing. This is the benchmark mortgage index in Spain which, according to HelpMyCash, will close at around 2,83% in November, the highest figure since 2008. Source: 20minutos.es
December 01th 2022 Another Euribor blow: November will make an average mortgage more expensive by almost 3.000 euros: Closes the month at 2,828%, its highest level in 14 years. Analysts expect it to continue rising and exceed the 3% level next year Source: larazon.es
December 01th 2022 The Bank of Spain confirms that the Euribor rose to 2,8% in November and will make mortgages more expensive: The data for November assumes that a person who has a 30-year variable mortgage of 150.000 euros and with a differential of 0,99% plus Euribor will suffer an increase in their mortgage payment of around 251 euros Source: epe.es
December 01th 2022 How much will my mortgage go up in 2023? - I found it: With the rise in inflation, more and more people are wondering how much my mortgage will go up in 2023. It depends on what you are paying. Fountain: yaencontre.com
November 30th 2022 The Euribor exceeds 2,8% and makes the average mortgage more expensive by almost 3.000 euros a year: The rise retracts the firm of fixed-rate loans, now very unattractive Source: lavozdeasturias.es
01th September 2022 The Euribor escalation will make mortgages more expensive by 1.500 euros: The new Euribor forecast, at 2,2% at the end of the year, places the increase in the cost of mortgages at 1.500 euros per year Source: asufin.com
August 27st, 2020 Mixed Mortgages: advantages and disadvantages | December 2022: Opinions on mixed mortgages, is it a good time for a mixed interest? ✅ Ranking with the best mixed mortgages on the market. Fountain: finances.roams.es
Contract a mortgage at a fixed or variable rate before the Euribor escalation: Accessing a home, in most cases, is usually linked to the application for a mortgage loan. Before doing it, it is important to stop and choose... Source: magazines.eleconomista.es
Mortgage Calculator - Calculate Mortgage | openbank: Calculate the amount of your Open Mortgage quickly and easily with the Mortgage Calculator. Know at the moment if it is pre-approved. We will wait for you! Fountain: openbank.es
The rise in the Euribor especially affects mortgages in Spain: The rise in the Euribor especially affects those mortgaged in Portugal, Spain, Ireland and Italy, the main European countries where traditionally... Source: elcorroweb.es

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