Spain's Euribor drops to 2.15% in July, easing variable mortgage payments

The Eurozone's benchmark Euribor for one‑year loans fell to 2.155% in July 2026, the lowest level since May 2023. The decline follows the European Central Bank’s decision to cut its reference rates by 25 basis points, leaving the deposit rate at 2.0%. For a typical Spanish variable‑rate mortgage of €140,000 over 25 years with a 1% margin, the lower Euribor reduces the annual interest cost by roughly €850, cutting the monthly payment from about €796 to €726.

Amid the Euribor drop, several banks are promoting fixed‑rate mortgages for borrowers seeking to switch (“subrogation”). The most competitive offers for July include Sabadell’s 2.75% nominal (TIN) rate, Openbank’s 2.86% TIN, MyInvestor’s 3.40% TIN and ING’s 3.85% TIN, each with associated TAE figures that reflect insurance and other fees. These products target borrowers who want a stable rate and can meet the banks’ additional conditions such as salary‑based discounts or bundled insurance.