Spain’s American-Style Fixed-Rate Loans Break the Mold

Spanish banks are trying to persuade homebuyers to change their habits by taking out American-style fixed-rate mortgages for as long as 30 years.

Banco de Sabadell SA, Spain’s fifth-biggest bank, in January began marketing a 30-year fixed-rate mortgage at 3.95 percent. CaixaBank SA, the No. 3 lender, offers mortgages of up to 10 years at a rate of 2.5 percent to 3 percent. They’re breaking the mold in a country where 90 percent of outstanding mortgages are variable rate.