Key data
| Regulation | Resolution of July 1, 2026, from the Bank of Spain, publishing the indices and reference rates applicable for calculating market value in interest rate risk compensation for mortgage loans |
|---|---|
| Publication | July 7, 2026 |
| Effective date | July 7, 2026 |
| Affected parties | Holders of fixed-rate mortgages or loans who wish to cancel them early |
| Category | Real Estate |
| Regulatory framework | Circular 5/2012 of the Bank of Spain |
| Reference period for rates | June 2026 |
If you have a fixed-rate mortgage and are considering early repayment, this Bank of Spain publication directly affects you. Each month, the Bank of Spain publishes IRS rates (Interest Rate Swap) that serve as mandatory reference for banks and consumers to calculate interest rate risk compensation. The Resolution of July 1, 2026 sets the values corresponding to June 2026.
These rates are not a minor technical detail: they determine how much money you will have to pay—or not—to the bank if you decide to exit your fixed-rate mortgage before the agreed maturity date.
What does this regulation establish?
Circular 5/2012 of the Bank of Spain requires monthly publication of IRS rates used as reference for two distinct calculations:
- Interest rate risk compensation on fixed-rate mortgages: IRS rates for the term equivalent to the remaining life of the loan are used.
- Spread for calculating market value in early cancellations of any loan or credit: specifically the 1-year IRS is used.
The rates published for June 2026 are as follows:
| Term | IRS Rate (June 2026) |
|---|---|
| 1 year | 2.633% |
| 2 years | 2.798% |
| 3 years | 2.897% |
| 4 years | 2.963% |
| 5 years | 3.010% |
| 7 years | 3.082% |
| 10 years | 3.143% |
| 15 years | 3.196% |
| 20 years | 3.224% |
| 30 years | 3.165% |
The curve is relatively flat between 2 and 20 years, indicating stability in medium-term rate expectations. The slight decline at the 30-year term (3.165% versus 3.224% at 20 years) is a technical signal that the market does not expect sustained increases over the very long term.
Economic and operational impact
The compensation for early cancellation of a fixed-rate mortgage can be zero or can amount to thousands of euros, depending on the difference between the contracted fixed rate and the IRS of the residual term.
The logic is as follows: if you contracted your fixed-rate mortgage at 2.5% and the 10-year IRS is now at 3.143%, the bank does not suffer a loss by recovering the capital early—in fact, it could reinvest it at a higher rate—. In this case, the compensation would be minimal or zero.
Conversely, if your fixed-rate mortgage is at 3.8% and the 10-year IRS is 3.143%, the bank does lose profitability by recovering the capital early. In that scenario, the compensation can be significant.
With a relatively flat IRS curve at 3% levels, holders of fixed-rate mortgages contracted between 2015 and 2021—when fixed rates were 1.5% to 2.5%—find themselves in a favorable position: the compensation required can be low or non-existent, because current market rates exceed their contracted rate.
Who does it affect?
- Individuals with fixed-rate mortgages who are considering early cancellation, whether due to property sale, inheritance, change of lender, or improved conditions.
- Companies and self-employed with fixed-rate loans who want to repay their financing early.
- Banking entities and savings banks that must apply these rates to correctly calculate the compensation owed by the customer.
- Financial advisors, lawyers, and managers who assist clients in mortgage cancellation or subrogation processes.
- Real estate credit intermediaries who negotiate early cancellation conditions on behalf of their clients.
Practical example
Suppose you contracted in 2019 a fixed-rate mortgage at 2.10% for 25 years, with a pending capital of €180,000 and 18 years of remaining life.
To calculate whether the bank can demand compensation for early cancellation, your fixed rate (2.10%) is compared with the IRS at the term closest to the residual. In this case, the 20-year IRS published for June 2026 is 3.224%.
Since the market rate (3.224%) is higher than your contracted rate (2.10%), the bank does not suffer a loss by recovering the capital: it can reinvest it at a higher rate. Therefore, the interest rate risk compensation would be zero in this scenario.
However, if your fixed-rate mortgage were at 3.5%—contracted in 2023, for example—and the 15-year IRS is at 3.196%, the difference is small but positive for the bank. In that case, compensation could be generated, although reduced given the small spread.
This preliminary analysis, using the published IRS rates, allows you to decide with real data whether it is worth canceling early or waiting.
What should affected parties do now?
- Locate the fixed rate of your mortgage in the deed or amortization schedule. This is the starting point for any calculation.
- Identify the residual term of your loan (years remaining until maturity) and find in the table above the IRS corresponding to that term.
- Compare both rates: if the published IRS is higher than your fixed rate, the compensation will probably be zero or minimal. If it is lower, prepare to negotiate or calculate the real cost.
- Request the official calculation of compensation from the bank before signing any cancellation. They are obligated to apply these IRS rates published by the Bank of Spain.
- Review the calculation with an advisor if the compensation offered by the bank seems high to you: errors in the application of these rates are not uncommon and can be challenged.
- Update this analysis monthly if you are in the decision-making process, since IRS rates are published each month and can vary.
Frequently asked questions
What is the IRS rate and why does the Bank of Spain use it to calculate mortgage compensation?
The IRS (Interest Rate Swap) is the interest rate at which financial entities exchange fixed-rate flows for variable-rate flows in the interbank market. The Bank of Spain uses it as an objective market reference to calculate whether the bank loses or gains when a customer cancels a fixed-rate mortgage early. If the IRS of the residual term is higher than the contracted fixed rate, there is no loss for the bank and the compensation is zero.
What is the 1-year IRS rate published for June 2026 and what is it used for?
The 1-year IRS rate published for June 2026 is 2.633%. This specific rate is used to calculate the spread applicable in early cancellation of any loan or credit, not just mortgages. It is the broadest reference rate among those published in this resolution.
How do I know if I will be charged compensation for canceling my fixed-rate mortgage early?
Compare your mortgage's fixed rate with the IRS published for the term closest to the years you have remaining on your loan. If the current IRS is higher than your fixed rate, the bank does not suffer a loss and the compensation should be zero. For example, with a 20-year IRS of 3.224%, if your fixed-rate mortgage is at 2.5%, there would be no compensation. If your fixed-rate mortgage is at 3.8%, there could be.
How frequently are these IRS rates updated and where are they published?
The Bank of Spain publishes them monthly through resolution in the Official State Gazette (BOE), under Circular 5/2012. The resolution published on July 7, 2026 contains the rates corresponding to June 2026. For early cancellation decisions, it is advisable to always consult the most recent publication.
What happens if the bank applies an incorrect IRS rate when calculating my compensation?
The bank is obligated to apply the IRS rates officially published by the Bank of Spain in accordance with Circular 5/2012. If it applies different rates or performs the calculation incorrectly, the customer can challenge the settlement. It is recommended to request the calculation breakdown in writing and, if there are discrepancies, contact the Bank of Spain's Claims Service or a specialized legal advisor.
Official source
View complete regulation at 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-2026-14750