Mortgage revisions in Spain are landing €65 a month higher as Euríbor nears 3%

The same loan that cost €845 a month a year ago now costs €910, and nothing about it has changed except the index it is tied to. Spain’s Euríbor has risen almost a full percentage point in 12 months and is closing in on 3 per cent for the first time since 2024.

Eight months of increases have taken the index to a two-year high

The 12-month Euríbor stood at 2.913 per cent on Tuesday August 11, leaving the provisional average for the month at 2.914 per cent. That is the highest the index has been since September 2024. The month-by-month record explains why revisions are stinging now rather than earlier in the year. In January the average was 2.245 per cent and in February 2.221 per cent, both slightly below where they had been 12 months before.

Every month since has been higher than the last. By August the gap against the same month in 2025, when the average was 2.114 per cent, had widened to 0.8 percentage points, the largest of the current cycle.

What the increase adds to a €150,000 loan

Banks do not use the daily figure. They take the monthly average for whichever month is named in the mortgage contract and add the diferencial, the fixed margin agreed when the loan was signed.

On a €150,000 mortgage over 25 years at Euríbor plus 1 per cent, an annual revision using August’s provisional average lifts the monthly payment from €845.24 to €909.65, according to calculations published by El Blog del Euríbor. That is €64.41 a month difference, or roughly €773 across the year. Loans revised every six months move in smaller steps, rising from €853.68 to €909.65, a little under €56.

On Spain’s average mortgage of around €167,000, the gap between a revision taken a year ago and one taken now works out at about €66 a month. 

Why energy costs are showing up on Spanish mortgage bills 

The European Central Bank raised its three key interest rates by 25 basis points on Thursday June 11, the first increase since 2023. The deposit rate rose to 2.25 per cent, the main refinancing rate to 2.40 per cent and the marginal lending rate to 2.65 per cent, all with effect from June 17.

In the projections published alongside that decision, the bank put average eurozone inflation at 3 per cent for 2026, up from earlier estimates, and said the war in the Middle East was generating inflationary pressures. Energy carried the highest annual inflation rate of any category at 8.7 per cent.

Rates were then left unchanged at the meeting on Thursday July 23. The Euríbor has carried on climbing regardless, because it reflects what banks expect the ECB to do next rather than what it has already done. 

The diferencial decides which of the three routes is worth taking

Nobody with a variable mortgage has to sit still, but which option makes sense depends on the terms that have already been signed. A subrogación moves the loan to a different bank willing to improve the margin or the term, without cancelling the mortgage and starting again. A novación renegotiates with the existing lender, which is faster and cheaper but only works if that bank agrees to move. ActuallSwitching to a fixed rate removes the link to the index altogether, at the cost of giving up any future falls. 

Brokers advise comparing offers on the TAE (the annual equivalent rate, which includes fees and charges) rather than the headline interest rate, and doing it before the revision date rather than after. Valuation and arrangement costs have to be recovered out of whatever the change saves, so the fewer years left to run, the harder that becomes.

Thursday September 10 is the date that shapes the rest of the year

The next ECB decision falls on Thursday September 10, with updated economic projections published alongside it. Financial markets are pricing in a further quarter-point rise, which would take the deposit rate to 2.5 per cent.

Most forecasters do not expect the Euríbor to run far beyond 3 per cent even so. CaixaBank Research has the index near 2.89 per cent by December, while comparison site HelpMyCash expects it to sit between 2.6 and 3 per cent for the rest of the year.

The past two years have shown how quickly the assumptions behind the projections can shift, so for anyone with a revision date approaching, the number that decides the new payment is the monthly average for the month written into the contract, not the daily figure in many headlines.