73% of Spanish homeowners with variable-rate mortgages have never called their bank to renegotiate terms. These are the same people paying between €1,500 and €3,000 more per year than necessary—money they simply hand over to their financial institution through inertia.
With Euribor stabilized at 2.25% following ECB rate cuts and subrogation offers starting at Euribor + 0.48%, the current landscape offers opportunities that didn’t exist 18 months ago. But savings windows don’t last forever.
This article gives you the exact tools to evaluate your situation and take action. No fluff, just real numbers.
The “I Already Have Good Terms” Myth
Most mortgage holders believe their mortgage is reasonably competitive. It rarely is.
If you signed your mortgage between 2019 and 2023, you probably have a spread between 0.80% and 1.20% over Euribor. The best current offers are at 0.48% - 0.55%. That 0.30-0.70 percentage point difference translates into concrete numbers:
| Outstanding principal | Spread difference | Annual savings | 15-year savings |
|---|---|---|---|
| €150,000 | 0.40% | €600 | €9,000 |
| €200,000 | 0.40% | €800 | €12,000 |
| €300,000 | 0.50% | €1,500 | €22,500 |
An OCU study of over 50 fixed-rate mortgages revealed differences of up to €7,676 annually between the best and worst offers for the same amount. These aren’t pennies.
Key fact: The Bank of Spain recorded a 34.1% increase in creditor subrogations (bank switches) in October 2025. Mortgage holders are waking up.
The Three Savings Levers
You have three main options to reduce what you pay on your mortgage. They’re not mutually exclusive—you can combine them.
1. Renegotiate with Your Current Bank
The simplest option with no direct costs. Your bank prefers to give something up rather than lose you as a customer.
When it works best:
- You’ve had the mortgage for over 5 years (they have fewer arguments to refuse)
- Your financial situation has improved (better job, higher income)
- You’ve never renegotiated before
- You have competitor offers as leverage
What to negotiate:
The spread is the main target. A 0.90% spread can be lowered to 0.50-0.60% with the right argument. But you can also negotiate:
- Elimination of tied products (insurance you don’t use)
- Switch from variable to fixed rate (if interested)
- Reduction or elimination of fees
The argument that works:
Don’t go with vague complaints. Arrive with a real competitor offer—Kutxabank at Euribor + 0.49%, for example—and say exactly this: “I have an approved subrogation. I’d prefer to stay here if you match the terms.”
Banks have retention departments with room to improve offers. But they only activate that margin when they perceive a real risk of losing you.
Process:
- Request an appointment with your manager
- Present competitor offers (printed)
- Ask for a counter-offer in writing
- Negotiate for 1-2 weeks
- Sign the novation (modification of terms)
Cost: €0 in most cases. Some banks charge a novation fee of 0.1%, but it’s negotiable.
2. Subrogation: Switching Banks
If your bank won’t budge, you take your mortgage elsewhere. It’s more paperwork, but the savings can be substantially higher.
Real costs breakdown:
| Item | Amount | Who pays? |
|---|---|---|
| Appraisal | €250-500 | You |
| Subrogation fee | Variable* | You |
| Notary | €300-600 | New bank |
| Registry | €100-300 | New bank |
| Agency | €100-200 | New bank |
*The subrogation fee depends on when you signed your mortgage:
| Original signing date | Maximum fee |
|---|---|
| Before April 27, 2003 | 1% |
| 2003 - 2007 | 0.5% |
| 2007 - June 2019 | 0.5% (5 years), 0.25% after |
| From June 2019 | 0.05% (3 years), 0% after |
Practical example: €250,000 mortgage signed in 2020, 5 years old. Fee: 0.05% × €250,000 = €125. Plus €350 appraisal. Total client cost: ~€475.
Best offers January 2026:
| Bank | Type | Offer |
|---|---|---|
| Kutxabank | Variable | Euribor + 0.49% |
| Cajamar | Variable | Euribor + 0.50% |
| Kelisto (broker) | Variable | Euribor + 0.48% |
| Openbank | Fixed | 2.42% APR |
| Unicaja | Fixed | 1.80% APR |
When does it pay off?
The simple rule: if you can reduce your spread by 0.30% or more and have more than 10 years left on your mortgage, it probably pays off. The typical break-even point is 12-18 months.
Example: Subrogation with €1,500 cost and €100 monthly savings → you recover the investment in 15 months. After that, it’s all net savings.
3. Early Repayment
If you have available liquidity, reducing the outstanding principal has a multiplier effect on your total interest savings.
The key question: Reduce payment or reduce term?
Mathematically, reducing the term always generates more savings. But reducing the payment gives you more monthly liquidity. The difference is considerable:
| €20,000 repayment | Reduce term | Reduce payment |
|---|---|---|
| €150,000 mortgage, 20 years, 3% | Interest savings: €8,500 | Interest savings: €4,250 |
| €150,000 mortgage, 20 years, 4% | Interest savings: €9,625 | Interest savings: €4,754 |
Reducing the term is almost twice as efficient in terms of savings. But if your priority is lowering the monthly payment for more breathing room, that’s a valid decision.
When early repayment makes sense:
- ✓ First 10 years of the mortgage (maximum concentration of interest)
- ✓ Interest rate above 2.5%
- ✓ You have €5,000+ available without compromising your emergency fund
- ✗ Variable rate with low Euribor and advanced term
- ✗ The early repayment fee is high
Early repayment fees:
For variable-rate mortgages signed from 2019:
- Years 1-3: maximum 0.25%
- Years 4-5: maximum 0.15%
- Year 6 onwards: no fee
For fixed-rate mortgages:
- Years 1-10: maximum 2%
- Year 11 onwards: maximum 1%
Tax note: If you purchased your home before January 1, 2013 and benefit from the primary residence tax deduction in Spain, early repayment reduces your deductible base. Run the numbers before deciding.
Real Case: From €1,550 to €1,282 Per Month
María signed a €300,000 variable-rate mortgage in 2021 for 30 years with a 0.99% spread over Euribor. In January 2025, with Euribor at 2.525%, she was paying €1,550 monthly.
She did two things:
- Renegotiated with her bank (they lowered her spread to 0.75%)
- Made an early repayment of €25,000 that she had in a deposit earning 0.5%
Result: current payment of €1,282. Savings of €268/month, €3,216 per year.
The deposit was earning her €125 annually. By repaying, she saves €1,800+ annually in interest. The math is clear.
Switching from Variable to Fixed: Does It Make Sense in 2026?
With Euribor stabilized and forecasts pointing to gradual decline (FUNCAS estimates 2.17% for late 2026), switching from variable to fixed right now is debatable.
Consider the switch if:
- You have low risk tolerance and prefer a fixed payment
- Your current spread is very high (above 1%) and you can get fixed at 2.20-2.40%
- You plan to keep the mortgage for more than 15 years
It probably doesn’t suit you if:
- Your spread is competitive (below 0.70%)
- You plan to sell or make early repayments in the next 5-7 years
- You can absorb payment increases of 20-25%
The legal cost of switching is minimal thanks to Law 5/2019: maximum 0.05% in the first 3 years, 0% after. But the opportunity cost can be high if Euribor continues to fall.
Action Plan: The Next 30 Days
Thinking about saving is free. Taking action is what generates results.
Week 1: Diagnosis
- Locate your mortgage deed and last review
- Note: outstanding principal, remaining term, current spread, signing date
- Calculate your current payment vs payment with 0.50% spread
Week 2: Exploration
- Request simulations from 2-3 comparison sites (iAhorro, HelpMyCash, Kelisto)
- Ask for subrogation offers from Kutxabank, Openbank, Unicaja
- Compare with your current situation
Week 3: Negotiation
- Call your bank with printed competitor offers
- Request an in-person appointment with your manager
- Ask for a counter-offer in writing
Week 4: Decision
- If your bank matches: sign novation
- If not: start subrogation with the best offer
- Evaluate early repayment if you have liquidity
What Most People Overlook
Inertia is the banks’ best friend. Every month you don’t act, you pay more than necessary.
This isn’t about obsessing over decimals. It’s about dedicating 4 weeks to reviewing something you’ll be paying for 20-30 years. The hourly return on that effort exceeds any other financial optimization you can make.
Euribor is at 3-year lows. Subrogation offers are aggressive. Banks are competing to capture mortgages. These conditions aren’t permanent.
Your next step: open your mortgage deed and note the spread. It’s the only number you need to get started.
Need Help with Your Mortgage?
At Pedro Ochoa Inmobiliaria, we don’t just help you find your ideal property in Barcelona—we also advise on financing and connect you with trusted mortgage brokers who can negotiate better terms on your behalf.
Contact us:
- Phone: 680 808 844
- Email: info@pedroochoa.com
- Office: Barcelona
Data updated January 2026. Interest rates and bank offers may vary. Always consult a professional before making financial decisions.
