The 12-month Euribor closes September at an average of 3.247%, nearly three-tenths higher than in August and its highest level since July 2024. The rise increases variable-rate mortgages and new loans.
The 12-month Euribor has closed September with an average of 3.247%, almost three-tenths above the August figure and its highest level in over two years, according to abc.es. To find a higher record, one must go back to July 2024, when the index exceeded 3.5%.
The indicator referenced by most mortgages in Spain is on a clearly upward trend, driven by interest rate hikes from the European Central Bank (ECB). The reason lies in inflation, fueled by geopolitical tensions, especially the war in Iran, which, along with the conflict in Ukraine, has raised the price of oil and fuels. The CPI in Spain is already approaching 5%.
The Euribor usually anticipates monetary policy decisions. Hence, it currently exceeds 3.2% when official rates in Europe stand at 2.5%. Analysts expect the ECB to implement further hikes in the coming months, so there is no respite in sight for mortgage holders.
The impact is noticeable in variable-rate mortgages, especially those due for review now. A typical mortgage of 150,000 euros, over 25 years and with a margin of 1% over the Euribor, had a monthly payment of 724.81 euros in September 2025, when the index was at 2.172%. With the current value, that same mortgage now pays 812.36 euros per month.
This represents 87.55 euros more per month, around 1,050 euros additional per year for the average loan. The increase also affects those applying for a new mortgage: financial institutions update their loan prices based on market rates, so if the Euribor rises, housing mortgages also become more expensive. Nevertheless, loans in Spain remain among the three cheapest in all of Europe.
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