Initial security
The first few years are the most financially critical: moving in, renovations, new expenses. A fixed instalment gives you stability when you need it most.
Types of mortgage
Mixed-rate mortgage
The best of both worlds: the security of a fixed instalment during the early years combined with the flexibility and potential savings of a variable tranche.
How it works
Two tranches, one mortgage
A mixed-rate mortgage splits the life of the loan into two phases. During the first tranche (usually between 3 and 15 years), you pay a fixed interest rate: your instalment is stable and predictable. This period gives you the peace of mind of knowing exactly how much you will pay each month during the early years, which tend to be the most financially demanding.
Once the fixed tranche ends, the mortgage switches to a variable rate: your instalment is recalculated periodically based on the Euribor plus an agreed margin. At that point, if the Euribor is low, you could pay less than with a 100% fixed-rate mortgage. It is a balanced solution that combines initial security with potential savings over the medium to long term.
Comparison
Fixed vs Variable vs Mixed
| Feature | Fixed | Variable | Mixed |
|---|---|---|---|
| Interest rate | Constant | Euribor + margin | Fixed, then variable |
| Monthly instalment | Always the same | Changes at each review | Stable, then variable |
| Risk of rate rises | None | High | Low at first, medium later |
| Initial instalment | Higher | Lower | In between |
| Ideal for | Conservative profiles | Profiles with a buffer | Balanced profiles |
| Typical term | 15-30 years | 20-30 years | 20-30 years (3-15 fixed) |
Advantages
Why choose a mixed-rate mortgage?
Competitive starting rate
The fixed rate on the first tranche is usually lower than that of a 100% fixed-rate mortgage, which translates into lower instalments during the early years of the loan.
Future flexibility
When it switches to the variable tranche, you can save if the Euribor is low. You can also always switch to another lender or refinance to a fixed rate if you prefer.
Frequently asked questions
Everything about the mixed-rate mortgage
What is a mixed-rate mortgage?
A mixed-rate mortgage is a home loan that combines an initial fixed-rate period (typically between 3 and 15 years) followed by a variable-rate tranche linked to the Euribor. During the fixed phase you pay a stable instalment, and from the variable tranche onwards your instalment adjusts in line with movements in the reference index.
How long is the fixed period of a mixed-rate mortgage?
The fixed period varies depending on the lender and the product. The most common initial tranches are 3, 5, 10 or 15 years at a fixed rate. The longer the fixed period, the more security you have for longer, although the fixed interest rate tends to be slightly higher on longer tranches.
Is a mixed-rate mortgage cheaper than a fixed-rate one?
Generally yes during the fixed tranche, since banks offer a lower starting rate than that of a 100% fixed-rate mortgage, in exchange for you taking on the variable risk in the second tranche. However, the total cost will depend on how the Euribor evolves during the variable phase.
Can I switch a mixed-rate mortgage to another lender?
Yes. You can move your mixed-rate mortgage to another lender or modify the terms through subrogation or novation. Spain's 2019 Mortgage Law caps the fees: during the fixed tranche the same fees as a fixed-rate mortgage apply, and during the variable tranche, those of a variable-rate one.
Find your ideal mixed-rate mortgage
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