Euribor Impact on Spanish Mortgages

The Euribor, a key indicator for many Spanish mortgages, is reacting to trade tensions. On April 14th, the daily rate decreased to 2.126%, pulling the monthly average down to 2.201%.

This decline follows the announcement of tariff measures, leading to anticipated mortgage discounts for Spanish homeowners. Experts predict potential savings exceeding €2,000 annually for those refinancing.

Potential Savings for Mortgage Holders

According to iAhorro, homeowners could save nearly €2,000 if they refinance this month. For a €300,000 mortgage over 30 years with a 0.99% spread, monthly payments could decrease from €1,467 to €1,305.

This translates to an annual saving of €1,949. For a €150,000 mortgage, the monthly reduction would be €81, resulting in an annual saving of €974.

Refinancing Considerations

Experts suggest considering a switch from a variable to a fixed or mixed-rate mortgage. The cost of canceling the original mortgage, typically 0.5% of the outstanding capital, should be factored into the decision.

Data from the National Statistics Institute (INE) indicates a 62.8% decrease in subrogations compared to January 2024, with 847 operations recorded.

Euribor influences interest rates on variable and mixed mortgages, affecting monthly payments. Its behavior can lead to significant changes in mortgage costs.

Euribor is the rate at which Eurozone credit institutions lend money to one another. It serves as a benchmark for most mortgages in Spain since its introduction in 1999.