The twelve-month euribor has once again surpassed 3% in daily rate for the first time since September 2024. The indicator reached 3.003% this Friday and raised the provisional average for August to 2.94%.
The movement threatens to increase the payments of variable mortgages that are reviewed in September. If August ends with an average of 2.94%, it is estimated that a typical mortgage with annual review would pay approximately 76 euros more per month, equivalent to an additional 911 euros per year.
The specific amount will not be identical for all households. It depends on the outstanding capital, the remaining term, the differential signed with the bank, and the exact review date.
Why the 3.003% daily is not the figure that updates the mortgage
Payments are not usually reviewed with the value of a single day. Contracts typically use the official monthly average of the euribor published in the Official State Bulletin, plus the differential agreed with the entity.
The 3.003% is, therefore, a signal of the trend, but not the definitive figure that will be applied to the reviews. The provisional average for August stands at 2.94%, compared to the 2.855% recorded in July.
The euribor had not exceeded 3% in daily rate since September 6, 2024, when it reached 3.025%. Its year-on-year increase is, moreover, the most pronounced since November 2023.
How much a mortgage can rise in September
To know the real effect, one must compare the average of August 2026 with that of the month used in the previous review. In annually reviewed mortgages, the reference will normally be August 2025; in semi-annual ones, it will be compared with the average corresponding to February.
The example of 76 euros monthly and 911 annually is indicative. A family with little outstanding capital or few years left to pay will experience a smaller increase. Those who maintain a high balance and a long term may register a higher increase.
The basic formula combines the current euribor, the contract differential, the outstanding capital, and the number of remaining payments. It is advisable to use the bank’s simulator or that of the CNMC before making decisions.
Why the euribor is rising
The indicator halted its decline during the spring, coinciding with the rise in inflation and the energy tensions arising from the conflict in the Middle East. In June, the European Central Bank raised interest rates by 25 basis points and in July decided to maintain them.
The Euribor does not automatically replicate the decisions of the ECB. It reflects market expectations about how much money will cost in the coming months. If investors believe that rates will remain high for longer, the indicator tends to rise even before the ECB makes a new decision.
What you can do if your payment is going to increase
The first step is to review the deed and check which month is used, how often the loan is updated, and what the contracted spread is. After that, it is useful to ask the bank for a written simulation.
One can also consider a novation with the entity itself, a subrogation to another bank, or switching to a fixed or mixed rate. These operations may include fees and other expenses, so the total cost should be compared and not just the first payment offered.
Another possibility is to make an early repayment to reduce the payment or term. It only makes sense if the household maintains a sufficient emergency cushion and if the fees and tax situation do not negate the savings.
The rise of the Euribor does not automatically make all fixed offers better. The comparison should be made with the annual equivalent rate, insurance, linkages, fees, and the total cost over the life of the loan.