The fixed rate mortgage is the preferred option for those seeking peace of mind and financial predictability. With a fixed interest rate, your monthly payment never changes, regardless of what the Euríbor or financial markets do.
How does a fixed rate mortgage work?
Unlike a variable mortgage, the interest rate on a fixed mortgage is agreed at the time of signing and does not change throughout the life of the loan. This means from the first month to the last you pay exactly the same monthly payment.
The typical term ranges from 10 to 30 years, and the interest rate is slightly higher than a variable mortgage under normal market conditions, but it offers a security that many clients value above the cost.
What do banks look at?
To approve a fixed rate mortgage, banks look at:
- Debt capacity — Monthly payments must not exceed 35% of the household's net income.
- Job stability — Permanent contract with minimum tenure. Civil servants enjoy particularly favourable conditions.
- Available savings — Minimum 20% of the purchase price plus purchase costs (6-15% depending on the region).
- Credit history — No outstanding debts or entries in delinquency registers (ASNEF, RAI).
- Appraisal value — The bank finances based on the lower of purchase price and appraisal, generally up to 80%.
- Applicant's age — The sum of the holder's age plus the requested term must not exceed 75-80 years depending on the bank.
When is a fixed rate mortgage the right choice?
A fixed rate mortgage is especially recommended when:
- You value the peace of mind of knowing exactly what you'll pay each month.
- The Euríbor is low and fixed rates are competitive.
- Your purchase horizon is long-term and you don't plan to sell soon.
- You have an aversion to financial risk or tight income.
- You want to plan your family finances without uncertainties.
Fixed vs variable mortgage: which is better?
The Duplo Capital advantage
Duplo Capital negotiates simultaneously with over 20 institutions to get you the most competitive fixed rate on the market — something you couldn't achieve by going directly to your bank.
Frequently asked questions about fixed-rate mortgages
No, the interest rate on a fixed-rate mortgage is agreed at signing and does not change for the whole life of the loan. You pay the same instalment from the first month to the last, whatever happens to the Euribor or the financial markets. It would only change if you decide to modify the loan, for example by making an early repayment.
At the outset it usually is: under normal market conditions, the fixed rate is slightly higher than that of a variable-rate mortgage. In return, it gives you the security of a payment that never changes, which many clients value above the cost. Which one ends up cheaper will depend on how the Euribor evolves over the life of the loan, which nobody can predict with certainty.
It is especially suitable when you value the peace of mind of knowing exactly what you will pay each month. It is often a good option when the Euribor is low or expected to rise and fixed rates are competitive, when you have a long-term horizon and do not plan to sell soon, or when your income is tight or you are risk-averse. Even so, there is no universal answer: it depends on your profile, your term and market conditions.
The usual term for a fixed-rate mortgage ranges from 10 to 30 years. In addition, your age plus the requested term should not exceed 75-80 years, depending on the lender. So the maximum term available to you will depend on your age and on the bank.
Mainly borrowing capacity, job stability, savings and a clean credit history. The monthly payment should not exceed 35% of the household's net income, and you will normally need at least 20% of the purchase price plus the purchase costs (between 6% and 15% depending on the autonomous community). The bank usually finances up to 80% of the lower of the purchase price and the appraised value, and values a permanent contract; civil servants often obtain particularly favourable terms.
Above all, review the FEIN (European Standardised Information Sheet), which the bank must give you before signing under Spain's Law 5/2019, as it sets out the rate, payments, fees and costs. Also check which linked products are required to get that fixed rate, and compare offers by their APR (TAE), not just the nominal rate. Before signing, the law also requires a visit to the notary for the transparency deed, where you can raise any questions; Duplo Capital compares fixed, variable and mixed offers from more than 20 lenders and explains every condition to you before you sign.
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