What mortgage revision involves

We'll explain to you how a revision is performed for a variable-rate mortgage loan

A mortgage revision consists of updating the value of the reference rate to which a mortgage is linked. In Spain, the reference rate to the one which are indexed the majority of mortgages to variable rate interest is the euribor, so the evolution of this index determines the monthly fee to the one which the customer have to face in mortgages floating rate.

These revisions take place yearly or twice-yearly, depending on the terms stipulated when the mortgage loan contract is signed. In this system the time period used for the revision begins to be counted from the day on which the variable-rate mortgage is signed, so that the customer always knows when the next updating of the mortgage installment amount will take place.

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.
After the variable mortgage interest rate has been reviewed, a customer's monthly payments may increase or decrease depending on changes in the Euribor. A rise in interest rates (Euribor) implies an increase in the mortgage's installment payments after the revision, while a drop in rates will cause them to decrease. This does not happen with fixed-rate mortgage loans, where the borrower will always know the exact amount to be paid for the monthly installments.

Mortgage review calculation

The mortgage Euribor published by the Banco de España (Bank of Spain) is used to calculate the new monthly amount after the revision. Depending on the bank, this may be the rate from the month prior to the revision or even the rate from two or three months prior, depending on the conditions agreed in the mortgage loan contract.

This means that there are four elements involved in calculating the new installment: the new Euribor, the fixed margin applied by the bank, the amount with repayment still pending, and the number of years remaining before finalization of the mortgage loan.

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

There is no need to go in to the bank when this mortgage revision occurs, since the bank will calculate the new amount to be paid by the customer. However, if you want to perform your own calculation of the monthly installments you will be paying after your next revision, you can always use a mortgage calculator such as the ones made available by BBVA.

With some banks it is possible to change a mortgage's revision period, from twice-yearly to yearly or vice-versa. This can be done by going in to your bank and expressing your desire to do this, although this change will require a mortgage modification, which brings with it associated expenses and fees.

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.