Spain’s key mortgage benchmark is rising once more, putting renewed pressure on households with variable-rate loans. Millions of borrowers could face higher monthly payments as the Euribor approaches levels not seen in almost two years.
Spain Press Editorial Team
The 12-month Euribor, the main reference rate used to calculate most variable-rate mortgages in Spain, is continuing its upward trend. The indicator is expected to close July 2026 with a monthly average of around 2.8%, reaching its highest level since September 2024.
After a brief pause in June, when the Euribor stood at 2.798%, the benchmark rate has started climbing again. Compared with the same period last year, the indicator has increased by around 0.8 percentage points, directly affecting millions of Spanish mortgage holders.
Spanish Mortgages Become More Expensive
For a typical mortgage of €150,000 over 25 years with a one-percentage-point interest spread, borrowers facing an annual rate review could see a significant increase in their monthly repayments.
According to calculations by financial comparison platform Roams, such a mortgage would become around €59 more expensive per month following the latest Euribor adjustment. Over a full year, this represents an additional cost of approximately €712, equivalent to an 8% increase in mortgage payments.
Borrowers with six-monthly mortgage reviews are also feeling the impact. A loan with similar conditions could see monthly repayments rise by around 6.5%, increasing from an average of €730 to approximately €778.
Rising Interest Rates Add Pressure to Spain’s Housing Market
The Euribor plays a crucial role in Spain’s property market, as a large proportion of mortgages are linked to its evolution.
Although current levels remain below the peaks reached during the previous interest rate cycle, rising borrowing costs are once again putting pressure on households and potential home buyers.
Young people looking to purchase their first home are among those most affected, as high property prices combined with more expensive financing make access to housing increasingly difficult.
The future path of the Euribor will continue to be closely monitored by banks, home buyers and millions of Spanish families as they assess the impact of changing interest rates on their finances.
