Euribor finished the session lower, slipping 0.138 points to land at 4.022%. It marks the largest drop seen since August 2012, a period spanning eleven years.
Does this signal an end to the rise in this benchmark? Simone Colombelli, Mortgage Manager at iAhorro, a mortgage comparison and advisory service, offers a cautious take. He says the drop is welcome news for anyone with a variable-rate loan, yet it is too soon to declare Euribor has stopped rising. In his view, movements this year will likely see both upticks and downticks, keeping the rate near 4% for an extended spell.
Another factor behind the shift is the European Central Bank not raising rates at that moment. The ECB, led by Christine Lagarde, had paused, but the decision date of December 14 remained pivotal for predicting where Euribor would end 2023.
For those considering a variable mortgage, several institutions present options worth examining.
One notable option comes from Mediolanum Bank. The Euribor linked rate is Euribor plus 0.79% (0.99% in the first year) with an annual percentage rate around 3.60%. Requirements include opening a bank account with Mediolanum, a direct permanent income deposit of at least 3,000 euros, and the purchase of life insurance.
Next, Evo offers a Euribor plus 0.48% rate (2.30% in the first two years) with a variable mortgage at an APR of 4.72%. To qualify, applicants must maintain a payroll, unemployment benefit, or pension of at least 600 euros monthly for residency and have home insurance in place.
Kutxabank follows with a variable mortgage rate of Euribor plus 0.49% (2.91% in the first year) and an APR around 4.92%. More conditions apply here: payroll-to-residence, monthly income at or above 3,000 euros, a yearly contribution to Kutxabank pension plans of at least 2,400 euros, and insurance.
Another option is Ibercaja, offering a variable loan at Euribor plus 0.60% (1.50% in the first year) and an APR of 5.38%. The deal hinges on payroll and routine debits, the use of the company credit card, two insurance policies for life and home, and periodic investments in Ibercaja funds.
Abanca provides a similar variable mortgage with Euribor plus 0.60% (1.40% in the first year) and an APR at 6.11%, but with fewer connection requirements. If payroll is directly debited and up to 24 credit card purchases are made per year for business use, along with two insurance policies, the deal stands.
BBVA presents Euribor plus 0.60% (1.99% in the first year) with an APR of 5.49%. The agreement involves direct payroll debits and the signing of two insurance policies, covering home and loan protection.
In short, there are several variable mortgage paths available. The best fit depends on the individual situation, and the key step is a thorough comparison of offers.