Early mortgage cancellation 2026: what indices does the bank use to charge you

Key data

Anyone with a fixed-rate or mixed-rate mortgage and considering early cancellation needs to understand how the bank calculates what it can charge you. The Resolution of April 1, 2026 from the Bank of Spain, published in the BOE on April 13, 2026, updates the indices and reference rates that financial entities are required to use for that calculation.

This is not a minor bureaucratic procedure. It is the tool that determines whether you pay compensation when cancelling your mortgage, and how much. And the law requires banks to use it.

What does this regulation establish?

The Ley 5/2019 on real estate credit contracts allows banks to claim compensation when a customer cancels their fixed-rate or mixed-rate mortgage early, but only if that cancellation generates a real economic loss. To calculate whether there is a loss and how much, the law requires using official reference indices.

The Bank of Spain publishes these indices quarterly. The Q1 2026 resolution updates two types of values:

• Indices and reference rates for calculating market value in compensation for interest rate risk in mortgage loans.
• Differentials for calculating market value in early cancellations of loans or credits in general.

The logic is as follows: if interest rates have fallen since you signed your fixed-rate mortgage, the bank loses profitability when you cancel because it cannot reinvest that money at the same rate. The calculation using official indices quantifies that loss. If rates have risen, the bank has no loss and cannot charge compensation.

The mandatory use of these indices is the main consumer protection: it prevents banks from applying their own formulas that artificially inflate the compensation.

Economic and operational impact

The economic impact of this resolution materializes in two directions:

For the mortgage holder: the amount of compensation the bank can demand from you depends directly on the values published in this resolution. In a high-rate environment like the current one, compensation tends to be lower or even zero, because the bank can reinvest the cancelled capital at similar or higher rates. However, in mortgages signed at high fixed rates in previous periods, the calculation can result in significant compensation.

For financial entities: they are required to update their calculation systems every quarter with the new published indices. Failure to do so means applying compensation that has no regulatory support, which exposes the entity to claims and the return of amounts collected improperly.

From an operational perspective, any early cancellation processed from April 1, 2026 onwards must be calculated using the indices from this resolution, not those from the previous quarter.

Who does it affect?

• Holders of fixed-rate mortgages who are considering cancelling all or part of their loan before maturity.
• Holders of mixed-rate mortgages during the period when the rate is fixed, if they are considering early cancellation.
• Financial entities and banks that grant or manage mortgage loans and must calculate compensation for early cancellation.
• Financial advisors, mortgage managers and brokers who assist clients in cancellation or subrogation processes.
• Law firms and legal advisors who handle claims for compensation collected in excess.

It does not affect pure variable-rate mortgages, where the compensation for interest rate risk regulated in Ley 5/2019 does not apply.

Practical example

Imagine you signed a fixed-rate mortgage in 2021 and want to cancel it early in April 2026. The bank must calculate whether that cancellation generates an economic loss.

To do so, it takes the outstanding capital of your mortgage and calculates what that loan would be worth in the current market using the indices published by the Bank of Spain in the Resolution of April 1, 2026. If the calculated market value is less than the capital you are returning, there is a loss for the bank and it can claim compensation from you. If it is equal to or greater, it cannot charge you anything.

The practical key: before cancelling, you have the right to ask the bank to show you the detailed calculation with the current official indices. If the bank applies indices different from those published by the Bank of Spain or does not justify the calculation, you can challenge the compensation.

This same mechanism applies if what you are cancelling early is a non-mortgage loan or credit: in that case, the bank uses the differentials also published in this resolution to obtain the market value.

What should those affected do now?

1. If you are a holder of a fixed or mixed-rate mortgage and are going to cancel early: request the detailed calculation of the compensation from the bank and verify that it uses the indices published by the Bank of Spain in force on the cancellation date (from April 1, 2026, those from this resolution).
2. If the bank has already charged you compensation: check that the calculation was done with the official indices from the corresponding quarter. If not, you have grounds to claim a refund of the excess charged.
3. If you are a financial entity or manage mortgages: update your calculation systems with the new indices published on April 1, 2026. Any cancellation processed from that date must use these values.
4. If you advise clients in subrogation or cancellation processes: verify that the originating bank correctly applies the current indices before validating the compensation amount agreed upon.
5. If you have doubts about whether your mortgage is affected: check in your contract whether the rate is fixed or mixed and whether it includes a clause for compensation for interest rate risk under Ley 5/2019. If so, this resolution directly affects you.