Fixed interest rates are typical higher than variable
Fixed interest rates are usually always higher than variable interest rates on mortgages. A fixed interest rate applies for the whole term of the mortgage in Spain.
The fixed rate will depend, in part, upon the length of the lending period. For a longer-term, for example, 20 years, between 2.5% and 2.9% is commonplace. In the shorter term, it can be a lot lower because the bank has less exposure to future interest rate fluctuations. We have seen fixed rates as low as 1.5% over a 25-year term. The level of a fixed interest rate offered will also depend upon the borrower's profile(s).