Affordable mortgage offers are gradually disappearing from the financial landscape. In a context of inflation, exacerbated by a conflict in Iran driving fuel prices up, markets anticipate an impending interest rate hike from the European Central Bank. Consequently, Spanish financial institutions have seized this opportunity to increase their mortgage rates: according to the Bank of Spain, the average rate for mortgages in March was 2.75%, significantly higher than the 2.61% recorded in December of the previous year.
However, a few banks are still maintaining competitively priced offers to capture market share. Financial comparator HelpMyCash.com identifies the best mortgages in Spain in terms of interest rates offered by Ibercaja, Banca March, Banco Sabadell, Pibank, Kutxabank, and COINC.
Cheapest Fixed Mortgages
According to analysts, the Hipoteca Vamos Fija from Ibercaja offers the lowest fixed interest rate at 2.30% TIN (3.25% APR), provided the borrower sets up payroll, pays three bills, uses a credit card, and takes out home, life, and a systematic savings plan. If these services are not signed, the rate increases to 3.30% TIN (3.54% APR).
Next on the list is the Hipoteca Fija Avantio from Banca March, which has a starting interest rate of 2.65% TIN (3.01% APR), contingent on setting up recurring income and taking insurance with the bank. If requirements are not met, the rate rises to 3.35% TIN (3.48% APR).
Completing the top three is the Hipoteca Fija from Banco Sabadell, which offers rates starting at 2.75% TIN (3.58% APR), subject to setting up payroll and maintaining three insurance policies: home, life, and payment protection. If these conditions are not met, the rate increases to 3.75% TIN (3.99% APR).
Best Mixed Rate Mortgages
For mixed-rate options, the Hipoteca Pibank Mixta from Pibank offers the lowest initial interest of 1.75% TIN fixed for the first four years, followed by EURIBOR + 0.68% for the remaining term (3.18% APR), with no requirement to take additional products.
Following closely is the Hipoteca Vamos Mixta 5 from Ibercaja, which provides a fixed rate of 1.80% TIN for the first five years, transitioning to EURIBOR + 0.60% afterward (3.66% APR), with similar conditions to the fixed-rate offer. If these requirements are not fulfilled, the initial fixed rate rises to 2.80% TIN and the variable rate goes to EURIBOR + 1.60% (3.97% APR).
Banco Sabadell also ranks third in this category, offering a mixed mortgage at 1.80% TIN fixed for the first three years and EURIBOR + 0.70% thereafter (3.90% APR), conditioned on payroll setup and insurance purchases. If not, the fixed rate is at 2.70% TIN and EURIBOR + 1.60% (4.22% APR).
Most Attractive Variable Rate Mortgages
Looking at variable-rate offerings, the Hipoteca Variable from Kutxabank holds the lowest initial rate at 1.92% TIN for the first year, followed by EURIBOR + 0.49% for the remaining term (3.62% APR), contingent upon setting up payroll and taking a home insurance and a pension plan. If not, the rate rises to EURIBOR + 1.49% (4.33% APR) starting from year two.
The Hipoteca Variable from Banco Sabadell secures the second position with an initial rate of 1.50% TIN for the first year and EURIBOR + 0.50% subsequently (3.93% APR), dependent on payroll and multiple insurance policies. If these conditions are not met, the rate increases to 2.50% TIN for the first year and EURIBOR + 1.50% thereafter (4.36% APR).
Rounding out the top three variable-rate mortgages, the Hipoteca Variable from COINC starts with a 2.30% TIN fixed for the first three years, shifting to EURIBOR + 0.50% afterward (3.26% APR), provided customers open one of Bankinter’s active accounts. Without this, the initial rate is 2.70% TIN for the first three years and EURIBOR + 0.90% after (3.71% APR).