February closed with Euribor at the 3.534 percent level. It is important to note that the European Central Bank plans another rate increase in March, so the reference index could continue its upward path.
The ECB raised official interest rates by 0.5 percent in February, and if it raises again by 0.5 percent in March, rates would reach around 3.5 percent. Analysts expect Euribor to trend toward 4 percent by summer, according to Simone Colombelli, mortgage manager at iAhorro.
So, is it still profitable to consider a variable mortgage? Colombelli notes that these products often feature very low spreads, meaning the borrower pays predominantly the interest tied to Euribor rather than a large fixed component.
Among the variable mortgage options, EVO stands out with an Euribor TIN of plus 0.50 percent and an initial rate of 0.99 percent for the first year, followed by an APR around 3.87 percent. Some products require payroll or other steady income, more than 600 euros, and the purchase of home insurance as part of the deal.
Mediolanum Bank is another key player in the variable mortgage segment. Its Mortgage of Freedom offers an Euribor TIN of plus 0.79 percent, with 0.99 percent in the first year, and an APR near 3.60 percent. The requirements include opening a current account, maintaining a direct permanent income at or above 3,000 euros, and taking out life insurance.
Unicaja is also prominent in this field. Its variable mortgage lists Euribor plus 0.50 percent, with 0.99 percent in the first year, and an APR around 4.36 percent. It typically requires monthly income above 2,500 euros, payroll and principal residence ties, plus home, life or temporary disability insurance; additional car or health insurance and contributions to a retirement plan or mutual fund may also be requested.
Kutxabank offers a lower second-year TIN of Euribor plus 0.49 percent. Like others, it imposes several conditions: salary deposits of at least 3,000 euros per month, annual contributions to Kutxabank pension plans above 2,000 euros, and the purchase of home insurance.
EN does not demand as many connections. By directly debiting salary payments, maintaining more than 600 euros per month, or keeping a minimum daily balance of 2,000 euros along with two life and home insurance contracts, the Euribor TIN reaches plus 0.59 percent, with 1.50 percent in the first year and an APR near 4.38 percent.
Watch out for linked offers
At first glance, a mortgage may seem to fit a user’s needs, but it is essential to review accompanying linked products. Some of these offers can be helpful for daily life, while others are designed to lock in higher costs. It is possible to pay more with a tied product than with a simpler arrangement.
The best approach is to run the numbers first. That step helps a prospective borrower understand whether the mortgage costs are truly competitive. It also clarifies how a lender’s product compares with others within the same organization, as well as across different banks.
In practice, a careful calculation can reveal whether a mortgage includes excessive fees or if a lower fixed element comes at the expense of a higher overall rate. A clear view of the total cost over the term makes it easier to compare monthly payments, insurance requirements, and any mandatory products that accompany the loan.
Ultimately, it is prudent to map out a personal financial plan before committing. A thorough estimate of the future payments helps determine if a variable-rate mortgage remains a sound choice amid shifting Euribor values and evolving central bank policy. By comparing offers, recognizing required insurances, and understanding each lender’s criteria, a borrower can select a product aligned with both current financial circumstances and long-term goals.