Variable Mortgages Reduce Costs by Up to 3,000 Euros a Year
The Euribor, the benchmark used across Europe to set rates on variable mortgages, has delivered encouraging news for homeowners. In October 2025, the index hovered around the mid-2% range, a notable swing from the higher levels reached a year earlier. Lenders are competing aggressively, offering strong options for top profiles with fixed-rate loans nearing 2% and mixed-rate products dipping below that threshold, according to iAhorro.
From across the market, observers describe this period as a golden quarter for borrowers with variable-rate loans. Simone Colombelli, director of mortgages at iAhorro, notes that real relief is becoming available as banks present competitive terms, making it attractive for those approaching a renewal and for potential buyers weighing new financing options.
And as context, a year ago Euribor reached a high not seen since late 2009, underscoring the magnitude of the current shift. The ongoing decline means meaningful savings for households with variable-rate mortgages that require annual adjustment, and it remains a favorable moment for anyone considering signing a new loan, according to Colombelli.
Variable Mortgages Reduce Costs by Up to 3,000 Euros a Year
On the practical side, those facing their annual mortgage review typically see monthly payments fall by roughly 127 to 250 euros, depending on the loan amount. That range marks the largest annual drop in about 15 years, a magnitude last seen in December 2009 when the Euribor decline translated into substantial reduction in outlays for borrowers.
For homeowners currently paying a variable-rate mortgage, the revision can translate into real savings. For example, a loan of 150,000 euros over 30 years with an Euribor-based rate plus a 0.99% margin and annual review could see monthly payments ease from about 819 euros to around 692 euros. The monthly saving would be roughly 127 euros, equating to about 1,526 euros saved over a full year.
Similarly, a larger initial loan of 300,000 euros under the same terms could shift the monthly payment from about 1,638 euros to roughly 1,384 euros. That implies a monthly saving near 254 euros and annual savings approaching 3,053 euros.
How Could Euribor End the Year?
Forecasts from iAhorro suggest that if the current trend of gradual declines persists, Euribor could finish the year in the low-2% area, perhaps around 2.3% to 2.2%. It is important to note that projections depend on many factors, including decisions by the European Central Bank. If the ECB chooses to lower official rates at its next meeting, Euribor values could trend lower; if not, they may stay relatively flat or edge higher toward year-end, according to iAhorro’s mortgage experts.
Still, making precise predictions about the trajectory of this indicator is risky because a range of influences can shift the path. Factors such as central-bank movements and other macroeconomic developments play a significant role in daily Euribor values, and those following the market should remain aware of how policy decisions can alter the outlook for variable-rate loans.