Amortization Systems: French vs. German
The choice of amortization system defines how you will return the money to the bank. The most common in Spain are:
- 🇫🇷 French System (Constant Fee)
You will pay the same fee every month. At the beginning, most of the fee goes to paying interest. As the years go by, this proportion changes and you amortize more capital. It is the most used for its predictability.
- 🇩🇪 German System (Constant Capital)
The part of the fee that is destined to return the capital is always the same. As the outstanding capital decreases, the interest does too, so the monthly fee is decreasing. You will pay less interest in total than with the French system.
The Key Strategy: Early Amortization
Making extra payments on your mortgage is one of the smartest financial decisions. When doing so, you have two options:
1. Reduce the Term
You keep the same monthly fee but finish paying the mortgage earlier. This option is usually the one that saves you the most interest in the long run. Ideal if your goal is to clear the debt as soon as possible.
2. Reduce the Fee
You keep the original term but your monthly payments are reduced. This option gives you more economic leeway in your day to day. Ideal if you are looking to improve your monthly cash flow.
Our calculator allows you to simulate both scenarios so you can see the real impact of each prepayment and make the best decision.
📈 Evolution of Interest Rates and Euribor in 2026
In 2026, the mortgage market presents a scenario of greater stability after the volatility of previous years. With the Euribor settling at equilibrium levels (around 2.4% - 2.6%), banks have adjusted their offers to encourage hiring.
💫 Fixed-Rate Mortgages (2026)
Fixed-rate offers have been consolidated as the preferred option for safety. Currently, it is possible to find fixed rates from **2.75% APR** for profiles with high solvency, allowing you to shield yourself against any future market upturn.
🌊 Variable and Mixed-Rate Mortgages
Variable mortgages are regaining attractiveness with spreads falling below **Euribor + 0.50%**. On the other hand, mixed mortgages (fixed rate for the first 5-10 years and then variable) are positioned as the perfect hybrid to maximize savings in the short term.
Regardless of the type chosen, remember that in 2026 the key remains **negotiation** and personalized comparison.
Frequently Asked Questions (FAQ)
It is the most used reference index for variable mortgages in Spain. If your mortgage is variable (Euribor + Spread) and the Euribor goes up, your payment goes up. If it goes down, your payment goes down.
We use the French method (the standard in Spain). It calculates what part of your payment pays interest and what part repays debt. At the beginning, you pay a lot of interest and little capital; at the end, it's the other way around.