Note
Early repayment of a Spanish mortgage: caps and notice
Quick answer
You may repay all or part of a mortgage early. The notice in the contract cannot exceed one month, and the bank must give you the information you need within three business days. For loans signed on or after 16 June 2019 the caps are 2% in the first 10 years, then 1.5% for fixed loans and 0.25% in the first 3 years, or 0.15% in the first 5 years if agreed for variable loans.
Applies toBorrowers who plan to repay part or all of a Spanish mortgage early.
On this page: 10 sections
§ 1The right
For loans signed after 16 June 2019, the Bank of Spain says you can repay all or part of the amount you owe at any time. It describes the right in its pages for borrowers. This page belongs to the chapter in how rates and repayment works.
§ 2Notice
You must tell the bank within the notice period agreed in the contract, which cannot be longer than one month. After your notice, the bank must give you the information you need to understand the consequences of the decision within three business days. Make your notice in writing and keep a copy.
§ 3The caps
The Bank of Spain publishes the maximum compensation for loans signed, novated or subrogated on or after 16 June 2019, for individuals and residential property. For fixed-rate loans it is 2% in the first 10 years, then 1.5%. For variable-rate loans it is 0.25% in the first 3 years, or 0.15% in the first 5 years if agreed, and nothing after the period. In the other cases, the Bank of Spain gives no charge. The caps are maximums and the compensation is for the lender’s financial loss.
§ 4What the Bank of Spain’s pages disagree on
Two pages of the Bank of Spain give different figures for the cap when a variable-rate loan is switched to a fixed rate by novation or subrogation. One gives a lower figure than the other. We do not state a figure for this case. Ask the bank and your lawyer which figure applies to your contract, and ask the bank for it in writing.
§ 5Older loans
Loans signed before 16 June 2019, with no novation or subrogation afterwards, follow other tables. We did not read those tables, and we do not state their figures. The Bank of Spain’s pages for borrowers cover them.
§ 6Insurance
If you took insurance linked to the loan, the Bank of Spain says it ends with the loan unless you decide otherwise. Check your policy, and ask whether a refund of the unused premium is due.
§ 7Partial repayment
Decide whether to shorten the term or lower the instalment. Ask the bank to show both, and compare the interest saved. We have not read an official statement on the default.
§ 8Before you do it
Compare the cost of the compensation with the interest you save. In the early years, the cap may exceed the saving, and later it falls. Fixed or variable explained explains why variable loans carry a lower cap.
§ 9Keep records
Keep your notice, the bank’s reply, the figures it gave and the receipt for the payment. If the bank charges more than the cap, you will need them for a complaint to the bank and, if needed, to the Bank of Spain’s complaints service.
§ 10More on this topic
Euribor explained explains the index and Spanish mortgage in euros or pounds explains the currency choice.
How mixed rate works explains mixed-rate loans.
FAQRelated questions
What can the bank charge?
At most the statutory ceiling, meant to cover the lender’s actual loss. Loans signed since mid-June 2019 have one ceiling for fixed deals and another for variable ones; earlier loans use different tables.
How do I request it?
Tell the bank in writing, within the notice period your contract states. The bank must then give you, within the time the law sets, the information you need to understand the consequences, including the cost.
Is a partial repayment allowed?
Yes. The Bank of Spain says you may repay the whole or part of the amount you owe. Ask the bank how a partial payment changes your instalment or the term, since the page we read does not say.
Sources
- Banco de España, Cliente Bancario: Compensación o comisión por reembolso o amortización anticipada total o parcial de una hipoteca (official source, opens in a new window), Caps for loans signed on or after 16 June 2019Last checked 18 October 2026
- Banco de España, Cliente Bancario: Reembolso anticipado (official source, opens in a new window), Notice, information and cost of early repaymentLast checked 18 October 2026
- Boletín Oficial del Estado: Ley 5/2019, de 15 de marzo, reguladora de los contratos de crédito inmobiliario (official source, opens in a new window), Articles 8, 10, 14 and 15 read; later articles not readLast checked 18 October 2026
Financial note. No rate is printed unless it comes from a dated, official publication. Capital is at risk, exchange rates move, and no lender, broker or provider is recommended here. Mortgage terms are set by each lender; ask a registered intermediary about yours.