Euribor has shown signs of stabilization and appears to be settling into a steady range. It closed May at 3.862%, just a tenth higher than April’s level.
Will this stabilization continue in the coming months? Simone Colombelli, mortgage manager at iAhorro, notes that the most logical stabilization observed in the last four months is likely to persist in the near term.
Because this indicator is not expected to rise toward 5%, Colombelli adds that Euribor is more likely to hover around 4% and then level off.
In this environment, banks continue to offer floating rate mortgages. Some products still present an APR under 4.5% with competitive nominal rates.
One option is available at EVO. The variable mortgage there carries a rate of Euribor plus 0.48% (2.20% for the first two years) with an APR of 4.17%. However, payroll deposits, pension or unemployment benefits above a defined threshold, and home insurance are required as part of the program.
Unicaja also offers a variable mortgage tied to Euribor with a rate of plus 0.50% (1.49% in the first year) and an APR of 4.79%. Eligibility includes having a monthly income above a specified level, payroll domiciliation, home purchase, life or disability insurance, and contributions to a retirement plan or mutual fund.
Additionally, the orange mortgage plan is activated for those who directly deposit their salary, maintain monthly deposits above a set amount, and keep a minimum daily balance while obtaining home insurance. This combination yields an Euribor rate of plus 0.59% (1.99% in the first year).
Open Bank presents a variable mortgage with an APR of plus 0.60% (1.60% in the first year) and an overall rate around 4.62%. Domiciling payroll, arranging electric and gas services through a partner, and holding two insurances along with investment in mutual funds or pension plans offered by the bank can be part of the package.
Meanwhile, Mediolanum Bank and Freedom Mortgage advertise Euribor plus 0.79% (0.99% in the first year) with an APR near 3.60%. The requirements typically include opening a bank account with the lender, receiving a direct income and signing life insurance of a substantial amount.
Is it a good idea to have a variable mortgage agreement right now?
The question has become common as Euribor has risen in recent months. The key is to understand personal needs and compare options.
For some borrowers, a variable mortgage can make sense. It is wise to seek a shorter repayment horizon and to be prepared for potential increases in Euribor during rate reviews.
In any case, the main task is comparison. All options should be weighed to pick the mortgage that best fits individual circumstances. Using a mortgage comparison service can help identify the best deal. Reputable providers offer guidance throughout the process at no cost, helping borrowers find suitable financing.
There is also the possibility of switching to a different mortgage in the future if a better option arises. Renewal, transfer of ownership, or payoff with a new creditor are all potential paths.