How to Get the Best Mortgage in Madrid in 2026 and Save up to €30,000
How to Get the Best Mortgage in Madrid in 2026 and Save up to €30,000
Buying a flat in Madrid in 2026 is one of the most important financial decisions for many families and investors. With a constantly evolving market, choosing the right mortgage can make a significant difference in the total cost of the property. Here, we analyse the importance of selecting the best option and compare three types of mortgages to understand their long-term impact.
Key Factors for Choosing a Mortgage
- Interest rate: Fixed, variable, or mixed.
- Repayment term: The longer it is, the lower the instalments, but the more interest you pay.
- Fees and charges: Opening, early repayment, subrogation.
- Additional conditions: Ties with products like insurance or salaries.
The Euribor in 2026
The 12-month Euribor —the reference index for most variable mortgages in Spain— closed July 2026 at around 2.86%-2.94% monthly average, its highest level of the year. This figure is key to calculating the instalment of any variable or mixed mortgage, as it is periodically reviewed throughout the life of the loan.
Mortgage Comparison in 2026
Let's take a mortgage loan of €300,000 over 25 years as a reference and compare three options:
- Fixed Mortgage: 3.2% nominal interest rate (TIN), approximate monthly instalment of €1,460, total estimated over 25 years: €438,000.
- Variable Mortgage: Euribor + 0.9% (with the Euribor around 2.9%, an estimated TIN of 3.8%), initial approximate instalment of €1,545 (may increase or decrease at each review), total estimated: €463,000.
- Mixed Mortgage: 2.7% fixed for the first 10 years and Euribor + 1% thereafter, initial approximate instalment of €1,380, total estimated: €445,000.
Cost Differences
Comparing the total costs, we can observe a substantial difference:
- The fixed mortgage provides stability against Euribor increases, although it starts with a slightly higher rate.
- The variable mortgage may be cheaper if the Euribor decreases in the coming years, but with the risk of higher instalments if it rises.
- The mixed mortgage balances initial stability and potential future savings.
Importance of Negotiating with the Bank
Negotiating a reduction in the interest rate can mean significant savings over the life of the loan. Let's see the impact of obtaining a 0.5% discount on the interest rate:
- Fixed Mortgage with 2.7% TIN: Approximate monthly instalment of €1,375, total estimated over 25 years: €412,000. Savings: €26,000.
- Variable Mortgage with 3.3% estimated TIN: Initial approximate instalment of €1,460, total estimated: €438,000. Savings: €25,000.
- Mixed Mortgage with 2.2% fixed for the first 10 years: Initial approximate instalment of €1,300, total estimated: €415,000. Savings: €30,000.
As can be seen, a 0.5% reduction in the interest rate significantly reduces the total cost of the loan. Negotiating with the bank and comparing different offers can generate substantial long-term savings.
Conclusion
Choosing the right mortgage in 2026 depends on each buyer's financial profile, risk tolerance, and the expected evolution of the Euribor. All figures in this article are indicative estimates; carefully analyse the options, compare offers, and negotiate with banks, or consult a simulator and mortgage experts to obtain exact figures according to your case.
If you are looking to buy a property in Madrid, at Idílico Realty we are partners of Idealista and we advise you on choosing the ideal mortgage.
Click here for personalised advice and save with your new mortgage!
