Euribor rise impacts mortgage costs in Spain

The Euribor index, which serves as the benchmark for many variable-rate mortgages in Spain, has reached a provisional 12-month average of approximately 2.91% for August. This level represents the highest since September 2024, leading to increased monthly payments for many households.

For a mortgage of €150,000 over 25 years with a 1% spread, an annual review could see monthly installments rise from €845 to €910. Analysts suggest the index may remain stable near 3% through the end of the year, influenced by geopolitical tensions and expectations regarding European Central Bank policy.

Data from the National Statistics Institute (INE) shows a trend in mortgage management: subrogations to different lenders grew by 14.5% compared to the previous year, while novations—renegotiating terms with a current lender—decreased by 23.4%. Experts suggest that consumers may find significant savings by switching to fixed-rate products, which could potentially lower monthly payments by over €230 in certain scenarios, though total cost savings depend on the final APR (TAE).