Key data
| Regulation | Resolution of September 1, 2026, from the Bank of Spain, on indices and reference rates for compensation for interest rate risk in mortgage loans |
|---|---|
| Publication | September 7, 2026 |
| Effective date | September 7, 2026 |
| Affected parties | Holders of fixed-rate mortgage loans who cancel early and financial institutions |
| Category | Real Estate |
| Period | August 2026 (monthly data) |
| Regulatory framework | Bank of Spain Circular 5/2012 |
| IRS reference (1 year) | 2.814% |
| Published IRS range | From 3.012% (2 years) to 3.404% (20 years) |
If you have a fixed-rate mortgage and are considering canceling it early—whether due to property sale, refinancing, or simply because you want to pay off the debt—the cost of that operation depends directly on the IRS rates published monthly by the Bank of Spain. The Resolution of September 1, 2026 sets the indices corresponding to August 2026, which are the ones your financial institution must use to calculate the compensation it can charge you. The methodology is regulated by the Bank of Spain Circular 5/2012.
What does this regulation establish?
The Bank of Spain publishes each month the IRS (Interest Rate Swap) rates that financial institutions are obligated to use to calculate market value in two specific situations:
- Compensation for interest rate risk: when the customer cancels a fixed-rate mortgage early and the bank loses profitability because market rates are lower than the agreed rate.
- Calculation of the differential in early cancellations: using specifically the 1-year IRS as a reference to determine the applicable differential.
The IRS rates published for August 2026 are as follows:
| Term | IRS Rate (%) |
|---|---|
| 1 year | 2.814% |
| 2 years | 3.012% |
| 3 years | Not specified in the published resolution |
| 20 years | 3.404% (table maximum) |
| 30 years | 3.331% |
The 1-year IRS (2.814%) is the key index for calculating the differential in early cancellations. The rates for terms of 2 to 30 years are used to calculate the market value of the loan and, therefore, the compensation for interest rate risk. The maximum is reached at the 20-year term, with 3.404%.
This publication is monthly in nature and replaces the indices from the previous month. Financial institutions cannot use rates different from those published by the Bank of Spain for these calculations.
Economic and operational impact
The economic impact of these indices is direct for any fixed-rate mortgage holder considering early cancellation:
- If your fixed rate is higher than the market IRS: the bank has the right to charge you compensation, because it loses the profitability it expected to obtain. The greater the difference between your fixed rate and the IRS, the higher the compensation.
- If your fixed rate is lower than the market IRS: there is no compensation for interest rate risk, since the bank can lend that money under better conditions.
- For financial institutions: these indices determine the maximum amount they can claim from the customer as compensation. Using indices different from those published would be contrary to regulations.
With current IRS rates (maximum of 3.404% at 20 years), mortgages signed at fixed rates higher than 3.5%-4% in the years of low rates (2019-2022) can generate significant compensation if canceled now. Conversely, mortgages signed at low fixed rates (below 2.814%) will not generate compensation in the short term.
Who does it affect?
- Individuals with fixed-rate mortgages considering early cancellation due to property sale, bank change (subrogation), or full amortization.
- Companies and real estate developers with fixed-rate mortgage loans on assets they will transfer or refinance.
- Financial institutions and banks that must apply these indices obligatorily to calculate the compensation they can charge their customers.
- Financial advisors, wealth managers, and lawyers who negotiate early cancellation conditions on behalf of their clients.
- CFOs and financial directors of companies with fixed-rate mortgage debt analyzing refinancing operations.
Practical example
Imagine that in 2021 you signed a fixed-rate mortgage at 1.5% for 25 years for €300,000. Now, in September 2026, you want to cancel it early because you are selling the property. The outstanding capital is €260,000.
The bank will calculate the market value of your loan using the IRS rates published for the remaining term (approximately 20 years). With a 20-year IRS of 3.404%, the bank can lend that money today at a rate much higher than the 1.5% you pay. This means that there is no loss for the bank in this case: market rates are higher than your fixed rate, so no compensation for interest rate risk applies.
The inverse scenario: if you signed in 2022 a fixed mortgage at 3.8% for 20 years and the 20-year IRS is today 3.404%, the bank does lose profitability. The difference (0.396 percentage points) applied to the outstanding capital and remaining term will determine the maximum compensation the bank can charge you. On a loan of €200,000 with 18 years remaining, that difference can translate into several thousand euros in compensation.
That's why, before canceling early, it's worth calculating exactly which IRS corresponds to the remaining term of your mortgage and comparing it with your contracted fixed rate.
What should affected parties do now?
- Locate the fixed rate of your mortgage in the deed or in the amortization schedule provided by the bank. This is the starting point for any calculation.
- Compare your fixed rate with the IRS of the remaining term of your loan. If your fixed rate is lower than the IRS published for that term, there will be no compensation for interest rate risk. If it is higher, there may be.
- Request a detailed calculation from the bank of the compensation before signing any cancellation. The bank is obligated to use the IRS rates published by the Bank of Spain (Circular 5/2012) and cannot apply different indices.
- Negotiate the compensation if the amount seems high to you. The regulation sets the maximum the bank can charge, but nothing prevents negotiating a lower amount.
- Consult with a financial advisor or lawyer if the compensation amount is significant or if you have doubts about whether the bank is correctly applying the methodology of Circular 5/2012.
- Financial institutions: verify that your calculation systems are already updated with the IRS rates for August 2026 published on September 7. Using outdated indices can generate customer complaints.
Frequently asked questions
What is the IRS and why does it determine what I pay when canceling my fixed-rate mortgage?
The IRS (Interest Rate Swap) is the interest rate at which banks exchange fixed-rate flows for variable-rate flows in financial markets. The Bank of Spain uses it as a market reference to calculate how much your fixed-rate mortgage is "worth" at the time of cancellation. If your fixed rate is higher than the market IRS for the remaining term, the bank loses profitability and can charge you compensation. For August 2026, the IRS ranges from 2.814% at 1 year to 3.404% at 20 years.
How much can the bank charge me if I cancel my fixed-rate mortgage early in September 2026?
It depends on the difference between your contracted fixed rate and the IRS published for the remaining term of your loan. With the August 2026 rates (maximum of 3.404% at 20 years), if your fixed-rate mortgage is above that percentage, the bank can charge you compensation calculated on the outstanding capital and remaining years. If your fixed rate is below the market IRS, no compensation for interest rate risk applies. Always request a detailed calculation from the bank before signing.
How often do the IRS rates published by the Bank of Spain change?
The Bank of Spain publishes these indices monthly. The resolution published on September 7, 2026 contains the rates corresponding to August 2026. Each month the previous ones are replaced, so the cost of early cancellation can vary from month to month depending on market developments.
What regulation governs how the bank calculates compensation for early cancellation?
The calculation methodology is regulated by Bank of Spain Circular 5/2012. This circular establishes that financial institutions must obligatorily use the IRS rates published monthly by the Bank of Spain to calculate the market value of the loan and, therefore, the maximum compensation they can charge the customer in case of early cancellation.
Can I negotiate the compensation for early cancellation with my bank?
Yes. The published IRS rates determine the maximum amount the bank can claim from you, but the regulation does not prevent both parties from agreeing on lower compensation. If the amount calculated by the bank seems high to you, you can negotiate it. Make sure the bank is correctly using the indices published by the Bank of Spain for August 2026 (1-year IRS: 2.814%; 20-year IRS: 3.404%; 30-year IRS: 3.331%).
Official source
View complete regulation in official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-18770
