The 12-month euribor drops eight thousandths in October, to 3.239%, but the average variable mortgage payment increases by 102 euros per month after the annual review.
The 12-month euribor halts the rise of recent months in October, with a provisional average of 3.239%, according to Finect. This is eight thousandths less than in September (3.247%), marking the first monthly decrease since June, although the indicator remains above 3%, a level not seen since August 2024. The official figure will be published by the Bank of Spain on the first working day of November.
For those with a variable mortgage that is reviewed annually, the monthly drop is hardly noticeable. The payment is recalculated using the euribor from twelve months ago, which in October 2025 was at 2.187%, meaning it is 1.05 points below the current rate.
In the example of a mortgage on a property worth 181,285 euros over 30 years, with a margin of 0.61%, the rate rises from 2.797% to 3.849%. The monthly payment increases from 744.60 euros to 846.73 euros, an increase of 102 euros per month (13.7%), or 1,226 euros per year.
The average amount is based on housing mortgages from the INE in August 2026, and the margin is the average of six variable offers from October. The payments have been calculated using the Bank of Spain's simulator. The review payment is calculated on the outstanding capital after one year, with 29 years remaining.
The context also does not indicate rapid decreases. The preliminary CPI for October remains at 4.9%, its highest level since February 2023, and the core rate is at 3.1%. The ECB maintained rates at 2.50% last week, and Christine Lagarde acknowledged that the situation:
“could have justified a rise”
With the criterion that the payment does not exceed 35% of net income, the average mortgage requires an income of 2,415 euros per month, about 220 more than a year ago. This calculation is based on a new mortgage using INE data from August (26 years and an average rate of 3.08%), so it is not comparable to the payment of a variable mortgage that is being reviewed now.
To shield themselves against further increases, some opt for a fixed-rate mortgage, which has also become more expensive. According to data from the mortgage consultant Bayteca, three banks have raised their offers in October by between 0.15 and 0.25 points. Nevertheless, their rates remain below the 3.849% of the average variable rate from the example after the review.
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