Banks step up the pace in the mortgage battle and bring fixed-rate offers closer to 2.5%

At the start of the year, up to eight banks are offering fixed-rate mortgages at a maximum interest rate of 2.8%, and rates below 2.5% have even returned

Fixed-rate mortgages are once again in the focus of consumers and banks. The contracting of this type of loan for the purchase of housing is growing again in Spain, driven by the improvements in offers that the financial sector has been applying in recent months.

After the European Central Bank (ECB) left the price of money at 2.75% at its first meeting of 2025 and with the forecast that it will announce new cuts in the coming months, the banks are still focused on adjusting prices.

According to hipotecas data, we currently find up to eight fixed mortgages on the market at a maximum interest rate of 2.8% with bonuses from many of the country's main banking references, such as Sabadell, Bankinter, Santander, CaixaBank, BBVA and Openbank. However, Evo Banco has been the first to recover fixed mortgages below 2.5%. We review the general conditions of the most notable offer that each entity is marketing in January 2025.

Evo lowers the fixed rate to 2.45%

The digital bank of the Bankinter Group has stood out in the market after announcing in these first weeks of the year a 25 basis point reduction in the interest rate of its fixed mortgage, down to 2.45% (2.93% APR), with the maximum bonuses. That is, if the client direct deposits the payroll and takes out life and home insurance. For a loan of 150,000 euros, these conditions translate into a monthly payment of around 670 euros, although it is worth bearing in mind that the contract period is 25 years (compared to the 30 years that the sector usually establishes).

If these three requirements are not met, the interest rate on Evo Banco's fixed mortgage increases by 40 basis points, to 2.85% (3.12% APR). Even without bonuses, this is the most outstanding offer at the moment.

Among its advantages, it stands out that there are no commissions for the study of the operation or for opening the mortgage or for making early repayments, whether partial or total cancellation. In addition, it is available for first and second homes, with financing limits of 80% and 60%, respectively, of the appraisal value of the property, or its purchase price if this is lower.

Sabadell remains at 2.5%

The Catalan entity has also improved the price of its fixed mortgage, which is ranked second with the lowest interest rate in the idealista/mortgage comparator in January 2025. The monthly payment would be around 593 euros for an amount of 150,000 euros and a repayment period of 30 years.

Sabadell's fixed mortgage currently has an interest rate of 2.50% (3.66% APR) with the maximum bonuses. In this case, it is necessary to direct deposit the payroll and take out three insurance policies: home insurance, life insurance and payment protection insurance, which is activated if the mortgagor loses his job. In the absence of these four requirements, the interest rate of Banco Sabadell's fixed mortgage rises one point, to 3.50% (3.98% APR).

This loan does have commissions for early repayments, whether partial payments or a total cancellation. The maximum penalty that the bank can apply is up to 2% of the capital repaid early if the payment occurs during the first 10 years of the loan and if the operation entails a financial loss for the entity. After this period, the penalty cannot exceed 1.5%, as established by the mortgage law.

As for financing, the maximum is 80% of the lower of these two amounts: the appraisal value of the home or its purchase price. For second homes, the limit is 70%.

Santander offers 2.6% after the first few months

Banco Santander remains on the top spot for fixed mortgage offers at the start of the year, with a fixed rate of 2.6% discounted after the first six months (in this period, it applies 2.7%), with an APR of 3.22%.

This would mean a fee of around 608 euros for a 150,000 euro mortgage over a 30-year period, provided that the client decides to deposit their income (salary, pension, benefit or self-employed fee), take out some insurance (home, life, accident, temporary disability, etc.), use credit cards and have an alarm contracted with Movistar. There is also a bonus if the habitual residence being purchased, whose maximum financing is 80%, has a high energy efficiency rating.

In the absence of these conditions, the interest rate remains at 2.7% during the first half year from the signing, although from then on it rises to 3.70% (3.90% APR).

The loan has no opening fee, even if the which does penalize early repayments, with a cap of 2% of the capital advanced if the payment is made in the first 10 years after signing and 1.5% from the eleventh year onwards.

Bankinter sells a 2.69%

Bankinter is another of the banks that applies a lower fixed interest rate to its mortgages, with an offer of 2.69% (3.27% APR) with the maximum bonuses. For a loan of 150,000 euros, this interest translates into a monthly payment of 600 euros for 30 years.

To access these conditions, it is necessary to direct deposit the payroll, take out home and life insurance, and make regular contributions to an investment fund. Without these four requirements, the interest rises to 3.99% (4.33% APR).

As for commissions, Bankinter establishes a payment of 500 euros for the opening of the mortgage and also applies the limits allowed by mortgage regulations for early repayments; that is, a penalty of 2% of the capital paid if the disbursement occurs during the first 10 years from the signing and 1.5% if it is from then on, provided that the operation causes a financial loss to the bank.

CaixaBank, BBVA, Ibercaja and Openbank are below 2.8%

There are several entities that are marketing fixed mortgages at a subsidized interest rate of between 2.7% and 2.76%.

Caixabank

One of them is CaixaBank, which offers fixed loans at 2.70% (4.11% APR), which means a monthly mortgage payment of about 608 euros for 30 years for an amount of 150,000 euros.

To access these numbers, the client must have his or her payroll deposited and take out home and life insurance and an alarm system. If not, the interest rate rises one point, up to 3.70% (4.17% APR). In any case, the maximum financing is up to 80% of the appraisal value of the home, or its purchase price if this is lower, for the acquisition of a habitual residence.

As for commissions, the entity only penalizes early amortizations, whether partial or total, with a maximum of 2% of the capital paid in advance if the operation is carried out in the first 10 years of the mortgage and 1.5% from then on.

Ibercaja

Another entity that offers a mortgage below 2.8% is Ibercaja. The Aragonese bank is marketing a fixed loan at 2.75% (3.69% APR), which translates into a monthly payment of around 692 euros for a loan of 150,000 euros to be repaid over 30 years.

To qualify for this offer, the client must deposit their salary, take out home and life insurance, and make regular contributions to an investment fund. Without bonuses, the interest rate increases by one point, so it stands at 3.75% (4% APR).

Like the rest of the sector, Ibercaja is willing to finance up to 80% of the lower of these two amounts: the appraisal value or the purchase price of the habitual residence. And as regards commissions, it only penalises early payments, whether partial or to cancel the mortgage. The maximum commission is 2% of the capital advanced if it is repaid in the first 10 years of the loan and 1.5% from the eleventh year after signing.

BBVA

Along with CaixaBank and Ibercaja, there is also BBVA, which is marketing a fixed mortgage at 2.75% (3.81% APR), with a monthly payment of 612 euros for a loan of 150,000 euros and a repayment period of 30 years, provided that the maximum bonuses are applied: direct deposit of the payroll and home and life insurance.

Otherwise, the interest on the BBVA fixed mortgage rises to 3.75% (one point above the discounted offer, with 4.35% APR).

The entity charges a commission for early repayment, whether partial payments or a total cancellation, with a limit of 2% of the capital repaid during the first 10 years from the signing (or 1.15% from then on), and allows financing up to 80% of the appraisal value of the home, or the purchase price, if this amount is lower.

Openbank

Openbank is another of the entities that are in this range, with a fixed offer at 2.76% (3.30% APR) with a discount. This interest translates into a monthly payment of 613 euros for an amount of 150,000 euros to be repaid over a period of 30 years.

To access this offer, it is only necessary to direct deposit the payroll in the entity and take out home and life insurance. Otherwise, the interest rate increases half a point, to 3.26% (3.53% APR). After the Evo Banco offer without bonuses, this is the cheapest on the market.

In any case, this loan allows financing up to 80% of the purchase of the habitual residence, taking as a reference the lower of these two amounts: the purchase price or the appraisal value.

On the other hand, Santander's online bank does not charge a commission for the opening of the mortgage or for partial amortizations, although it does penalize the cancellation

In the same way as the rest of the sector, the maximum commission is 2% of the amortised capital if the payment is made in the first 10 years from the formalisation of the mortgage and 1.5% thereafter.

Unicaja offers 2.95%

The Malaga-based bank currently sells a fixed mortgage with an interest rate of 2.95% (3.65%), with a monthly payment of around 628 euros for an amount of 150,000 euros, with the maximum bonuses. That is, direct debit of the payroll (with a minimum of 2,500 euros per month) and bills, and making purchases with the bank's card. Other options are to take out life, home, unemployment, car or health insurance; or to make regular contributions to investment funds or a pension plan.

If these requirements are not met, the interest rate for the first six months remains at 3.05%, while after this period it rises to 4.15% (4.27% APR).

As for financing, Unicaja's fixed mortgage establishes a maximum of 80% of the appraisal value or the purchase price of the home, if this is lower, for the purchase of a habitual residence. On the other hand, it establishes an opening commission of 0.15% and a penalty for early repayments: 2% if the payment is made in the first 10 years from the signing and 1.5% from that moment on.

ING remains above 3%

The Dutch entity is the only one that still maintains the interest rate on its fixed mortgage above 3%. Specifically, its current subsidized offer establishes a rate of 3.35% (4.03% APR), with payroll and life and home insurance, with a monthly payment of about 739 euros for a loan of 150,000 euros and a term of 25 years.

In the absence of these three conditions, the interest would go to 3.85% (3.94% APR), which is one of the most attractive at the moment without subsidies.

This fixed loan for the purchase of a home only has a commission for early repayment, in the maximum terms established by law: 2% of the capital advanced if the disbursement is made in the first 10 years and 1.5% thereafter.

 Contact Christian Boesen, director of homes-abroad on christian@homes-abroad.com for a market analysis and get the best offers from our mortgage partners.