IRS Rates May 2026: How Much Your Bank Charges You When Canceling Your Fixed-Rate Mortgage

Key data

If you have a fixed-rate mortgage and are thinking about canceling it early, the amount you will pay or receive is not arbitrary: it is set by the Bank of Spain each month through IRS rates (Interest Rate Swap). For May 2026, these values have just been published in the BOE with the Resolution of June 1, 2026, and these are the rates your bank will use to calculate the compensation for interest rate risk.

Knowing these indices before canceling can mean a significant economic difference. It is not a bureaucratic formality: it is the data that determines whether early cancellation will be expensive for you or, on the contrary, the bank owes you money.

What does this regulation establish?

The Bank of Spain publishes monthly, in accordance with Circular 5/2012, of June 27, the IRS indices that serve as a reference for calculating the market value of fixed-rate mortgage loans when they are canceled early.

The logic is simple: if you canceled a mortgage at 3.5% fixed and the market is now at 2.8%, the bank loses profitability. That is why it can charge you compensation. If the opposite occurs—the market is above your agreed rate—you are entitled to receive compensation from the bank.

The IRS rates published for May 2026 are as follows:

The Resolution also establishes the applicable spreads to obtain the market value of loans or credits that are canceled early, ensuring uniformity in calculation throughout the Spanish financial system.

Economic and operational impact

These indices have a direct impact on the pocket of the mortgage holder who cancels early:

• If your agreed fixed rate is higher than the market IRS: the bank can charge you compensation for interest rate risk. With the IRS at 20 years at 3.275%, any fixed-rate mortgage signed above that level in the long-term brackets is in the zone of possible compensation in favor of the bank.
• If your agreed fixed rate is lower than the market IRS: the bank must pay you the difference. In this case, early cancellation can be economically advantageous for the holder.
• Transparency and uniformity: monthly publication ensures that all banks apply the same calculation criteria, avoiding discretionality.

The range of rates published for May 2026 goes from 2.629% at one year to 3.275% at twenty years, reflecting an upward rate curve: the longer the remaining term of the mortgage, the higher the market reference rate and, therefore, the greater the compensation at stake.

Who does it affect?

• Holders of fixed-rate mortgages who are evaluating or processing early total or partial cancellation.
• People who are going to sell their home with a pending fixed-rate mortgage and need to cancel it before maturity.
• Those who want to transfer or change their mortgage loan to a fixed-rate with another entity.
• Financial institutions that must apply these indices mandatorily to calculate compensation in their operations.
• Financial and real estate advisors who accompany clients in purchase-sale operations or refinancing with fixed-rate mortgages.

Variable-rate mortgages are not affected by these IRS indices, as compensation for interest rate risk is exclusive to fixed-rate loans.

Practical example

Imagine you signed a fixed-rate mortgage of 3.5% at 20 years five years ago. Today you want to cancel it early because you received an inheritance. You have 15 years of mortgage remaining.

The bank will take the IRS at 20 years for May 2026, which is 3.275%, as a reference for the market value for the closest available term. Since your agreed rate (3.5%) is higher than the market IRS (3.275%), the bank loses profitability with the cancellation: it can charge you compensation for interest rate risk.

Now the opposite case: you signed at 2.8% fixed at 10 years. The reference IRS is above your agreed rate. In this scenario, the bank cannot charge you compensation and, depending on your contract conditions, could even owe you a credit.

The key data is always to compare your agreed fixed rate with the IRS published for the term closest to your mortgage's remaining period. That spread is what determines who pays whom.

What should those affected do now?

1. Locate the fixed rate of your mortgage in the deed or in the amortization schedule provided by the bank. It is the essential starting data.
2. Compare your rate with the published IRS for the term closest to the time remaining on your mortgage. If your rate is higher than the IRS, prepare for possible compensation in favor of the bank.
3. Request a detailed calculation of the compensation from the bank before signing anything. They are obligated to provide it and it must be based on the IRS indices published by the Bank of Spain.
4. Review the conditions of your mortgage contract: not all fixed-rate mortgages include compensation for interest rate risk; it depends on what was agreed in the deed.
5. If you are going to sell or transfer, negotiate the timing of cancellation taking into account the monthly evolution of IRS rates: small variations can change the direction of compensation.
6. Consult a financial advisor or mortgage lawyer if the compensation amount calculated by the bank seems high to you or does not match your estimate based on official indices.

Official source

Consult complete regulation in official source

Notice: This article is purely informational in nature 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-2026-12605