Early mortgage cancellation in 2026: which indices does the Bank of Spain use to calculate what you pay

Key data

If you are thinking about cancelling your fixed-rate mortgage before it matures, the amount you will pay—or receive—is not decided freely by the bank. It is determined by the indices and reference rates that the Bank of Spain publishes periodically, and which it has just updated through the Resolution of May 4, 2026, published in the BOE on May 13, 2026.

This resolution is not new in nature: the Bank of Spain issues it periodically to keep the reference values that banks must apply mandatory updated. What changes with each publication are the indices themselves, which reflect market conditions at each moment.

What does this regulation establish?

The resolution establishes two differentiated but related elements:

• Indices and reference rates to calculate market value in compensation for interest rate risk in mortgage loans. These values determine whether, when cancelling a mortgage early, the customer must pay compensation to the entity or whether it is the entity that must compensate the customer.
• The applicable differential to obtain the market value in early cancellations of loans and credits in general, not just mortgages.

The legal framework that regulates this publication obligation is Law 2/1994 and its related regulations. This law regulates the subrogation and modification of mortgage loans, and establishes that compensation for early cancellation must be calculated using official values, not criteria specific to each entity.

The logic behind the mechanism is as follows: when a bank grants a fixed-rate mortgage, it assumes an interest rate risk for the entire life of the loan. If the customer cancels early and rates have fallen since signing, the bank loses future profitability. In that case, the customer may have to compensate them. If rates have risen, the bank benefits from the early cancellation and may be the one who must compensate the customer.

Economic and operational impact

The direct impact of this resolution is on the real cost of cancelling a fixed-rate mortgage early. Depending on when the mortgage was signed and how rates have evolved since then, the compensation can be significant in absolute terms.

For financial entities, the impact is operational: they are obligated to use these official values in all their calculations of compensation for early cancellation. They cannot apply their own indices or alternative methodologies. This ensures uniformity and transparency in the mortgage sector.

For mortgage holders, the impact is direct economic: before making the decision to cancel early, they must know which indices are in force and what result they produce when applied to their specific loan. An incorrectly calculated cancellation—or one carried out without consulting these indices—can result in an unexpected cost of thousands of euros.

Who does it affect?

• Holders of fixed-rate mortgages who are evaluating early repayment of their loan, in whole or in part.
• Financial entities (banks, savings banks, credit cooperatives) that manage early cancellation operations of mortgage loans.
• Financial and mortgage advisors who accompany clients in early repayment decisions.
• CFOs and financial directors of companies with fixed-rate business mortgage loans analyzing debt restructuring.
• Real estate developers with fixed-rate financing contemplating early cancellations due to asset sales.

Practical example

Imagine a company that in 2020 signed a fixed-rate mortgage loan at 1.5% on a commercial property, with a pending capital of 300,000 euros and 15 years remaining. In 2026, with interest rates at significantly higher levels than in 2020, the company decides to sell the property and cancel the loan early.

By applying the indices published by the Bank of Spain in this resolution, the bank calculates the market value of the loan. If current rates are higher than the rate agreed in the mortgage, the market value of the loan is lower than the pending capital: the bank loses if it cancels early, so the customer must pay compensation. If current rates were lower than the agreed rate, it would be the bank that would compensate the customer.

The exact amount of that compensation depends directly on the indices published in this resolution. Without these official values, the bank cannot legally calculate the compensation, and the customer cannot verify whether the calculation is correct.

What should companies do now?

1. If you have a fixed-rate mortgage and are considering cancelling it early, ask your financial entity to calculate the compensation applying the current indices published by the Bank of Spain in the Resolution of May 4, 2026.
2. Verify that the bank uses official indices and not its own methodology. You have the right to have the calculation be transparent and based on values published in the BOE.
3. If you are a financial entity, update your calculation systems with the new published indices, effective from May 4, 2026.
4. If you are a financial or mortgage advisor, inform your clients with fixed-rate mortgages about the existence of these indices and their impact on the cost of a potential early cancellation.
5. Before making the decision to cancel, compare the cost of compensation with the financial savings you would obtain. In some scenarios, cancelling early may not be profitable if the compensation is high.

Official source

Resolution of May 4, 2026, Bank of Spain - BOE