Euribor rates rise following European Central Bank interest rate hike

Euribor rates have risen following a 25 basis point increase in the European Central Bank's deposit facility rate on 10 September 2026. The six-month Euribor reached 2.978% on 18 September, its highest level since October 2024, while the 12-month rate hit 3.343%.

In Portugal, where approximately 39.87% of variable-rate home loans are indexed to the six-month Euribor, these increases will lead to higher monthly mortgage payments. Market projections suggest the 12-month rate could reach approximately 3.593% by December 2026.

In the broader mortgage market, fixed-rate offers remain competitive, with some rates starting from 2.55% TIN. In Spain, Ibercaja is offering fixed rates from 2.55% TIN, while Kutxabank provides variable differentials starting at Euribor + 0.49%. The rise in Euribor, which closed August 2026 at 2.954%, represents a significant increase compared to the previous year, impacting those with variable-rate loans.