Navigating the realm of mortgages can feel like embarking on a challenging hike through Spain’s stunning Sierra Nevada mountains. But don’t worry, you’re not alone on this journey.

In this guide, we’ll break down everything you need to know about Spanish mortgages, from the rocky terrain of variable-rate and fixed-rate options to the smoother paths of mixed-interest-rate and interest-only deals. Whether you’re a resident or an adventurous non-EU citizen exploring opportunities through the Golden Visa Program, it’s key to understand these basics before setting your foot on the trail.

We’ll also delve into factors that affect your borrowing power such as income, debts and even property location, as well as how to calculate mortgage in Spain. By understanding these essentials, you’ll be better equipped to navigate Spain’s mortgage landscape with confidence and ease.

So lace up those hiking boots – or in this case, get your financial documents in order – because together we’re going to conquer this financial mountain!

Spanish Mortgage Types

When it comes to Spanish mortgages, you’ve got a wide array of choices including variable-rate, fixed-rate, mixed-interest-rate, and even interest-only options; each with their own distinct advantages. Let’s take a look at them.


If you’re open to a bit of uncertainty, variable-rate loans can offer tantalizingly low initial interest rates. This type of Spanish mortgage has its rate pegged to the Euribor (Euro Interbank Offered Rate), which fluctuates over time in response to economic conditions.

Here are four key points about variable-rate mortgages:

  1. Lower Initial Rates: Variable-rate mortgages typically start with lower rates compared to fixed-rate ones.
  2. Rate Fluctuations: The interest rate changes as per the Euribor movements, potentially allowing for savings if rates decrease in future.
  3. Uncertain Monthly Payments: As your rate may change, so will your monthly payments, making budgeting a tad unpredictable.
  4. Potential for High Future Costs: If the Euribor spikes up, so does your interest cost and monthly repayments.

Ready to embrace stability instead? Let’s explore fixed-rate mortgages next where predictability reigns supreme!


Looking for peace of mind and predictability in your monthly repayments? Fixed-rate options might be just what you’re after! Unlike variable-rate mortgages that fluctuate with the Euribor rate, fixed-rate mortgages provide stability by allowing you to pay the same interest rate throughout your entire mortgage term.

This means your monthly payments remain constant, giving you the certainty to plan your finances without worrying about unexpected increases.

With a fixed-rate mortgage, you are part of a group of home buyers who value stability over potential short-term savings. You prefer knowing exactly how much is due each month and this sense of belonging gives you comfort and confidence in managing your expenses.

So while it may seem like you’re paying more up front with higher interest rates compared to variable ones, remember that what matters most is the long-term security it provides. Now, let’s explore another option: mixed-interest-rate mortgages.


With these, you get to enjoy the predictability of fixed rates for an initial period followed by variable rates, meaning you’re not completely tied down if interest rates fall in the future. It’s designed to give you a sense of security and flexibility.

However, bear in mind that this type is less common compared to fixed or variable-rate mortgages in Spain. Even so, it could be an ideal choice if you want to balance risk and stability in your financial planning.


Offering a unique financial advantage, interest-only mortgages can be an enticing choice for those desiring lower initial monthly payments. This type of mortgage allows you, as the homeowner, to pay only the interest on the loan for a specified period.

This means your monthly repayments will be significantly reduced during this time.

Now, you might wonder why everyone doesn’t opt for this? Well, it’s because after the interest-only period ends, your payments jump up to cover both the remaining interest and principal. That said, if you’re confident about an increase in your income down the line or plan on selling before then, this could be a smart move.

Final Thoughts

So, are you ready to dive into the wide world of Spanish mortgages? Trust me, it’s not as daunting as it sounds.

With a smorgasbord of options from variable-rate to interest-only, finding your fit is closer than you think.