Fixed-rate or mixed mortgage: which should I choose?

Main features of and differences between fixed-rate and mixed mortgages
A mixed mortgage loan (mixed mortgage) combines the features of a fixed-rate mortgage loan (fixed-rate mortgage) with a variable-rate loan (variable-rate mortgage). When considering the benefits of choosing a mixed or fixed-rate mortgage, it is best to evaluate three main factors: interest rate, term and monthly repayments.
Upper banner Fixed-rate mortgage Upper banner Fixed-rate mortgage
BBVA Fixed Mortgage
Enjoy the peace of mind of paying the same amount every month, with no surprises.

Interest rate

A fixed-rate mortgage always has the same interest rate which does not vary over the term of the loan. This way the monthly fee is guaranteed to be the same even when market interest rates increase or decrease.

With a mixed mortgage a fixed rate is applied in the first years. For the rest of the term, it works like a variable-rate mortgage, whereby the interest rate will consist of a fixed differential plus a reference rate (usually the Euribor). This causes the amount of the monthly repayment to increase or decrease in accordance with the fluctuations in the reference rate. This means that, in practice, it is a variable mortgage with some special conditions during the first years.


Fixed mortgages usually have a shorter repayment term than mixed or variable mortgages.

A mixed or variable mortgage allows greater flexibility, as financial institutions usually offer a longer repayment term to pay off the loan.

Central banner Central banner
We have the mortgage that is best for you
Discover BBVA mortgages and find the right one for you.

Monthly payment

With a fixed-rate mortgage the fee is always the same for the life of the loan. The amount does not increase or decrease. The amount that was initially established will be that charged every month.

With a mixed mortgage you pay the same fee for the first years while the loan functions like a fixed mortgage. During the rest of the term, it will be a variable-rate mortgage and the amount of the monthly repayment will depend on the value of a reference rate (Euribor). During this period, the interest rate of the mortgage is usually updated every six months based on the Euribor.

In the case of mixed mortgages, financial institutions usually offer a higher interest rate during the first years of the loan, and a more competitive interest rate during the rest of the term. This usually makes the amount of the monthly repayments higher during the first years of the loan than during the years in which a variable interest rate is applied.

CTA Study CTA Study
Mortgages - You might also be interested in Mortgages - You might also be interested in

You might also be interested in

  • Do you know why the Euribor varies? We'll explain what this rate consists of and why it varies on a daily basis.
  • Do you know what a mortgage credit facility is? At BBVA, we'll explain what it is and how it differs from a mortgage loan
  • Regardless of a property's appraisal value, all real estate has an official cadastral value registered for tax purposes.