The Euribor trend has continued to ease, though the momentum has slowed. After dipping from 3.679% in December 2023 to around 3.609%, the decline remains modest, illustrating a period of stabilization rather than a rapid fall.
The recent pause in Euribor movement mirrors the European Central Bank’s decision to hold rates steady on January 25. With ECB rates not edging lower for now, the path of the reference index appears tied to any forthcoming policy shifts at the central bank. Observers, including Simone Colombelli, mortgage director at iAhorro, note that a meaningful drop will likely materialize only after the ECB signals a rate cut, shifting the landscape for borrowers and lenders alike.
Looking ahead to the timing of lower rates, Colombelli envisions a delay into the second half of the year. He suggests the earliest reduction could arrive as soon as June, potentially reducing rates by 25 basis points to around 4.25%. He also cautions that the pace of declines will probably be uneven rather than a steady monthly slide. If this scenario holds and there are up to three reductions, 2024 could finish with ECB rates in a range roughly between 3.25% and 3.75%.
In response to this environment, lenders have adjusted their offerings by shifting more emphasis onto fixed and mixed mortgage products, while leaving variable rate loans largely unchanged in their core structure.
Among the strongest options in the variable-mortgage space is the Evo product line. The EuriborTIN sits at plus 0.48% with an APR of 4.32%. To qualify, applicants typically need to provide a salary slip above 600 euros, unemployment benefit or pension proof, proof of residence, and home insurance coverage.
Mediolanum Bank presents the Freedom Mortgage with a EuriborTIN of plus 0.79% and an APR of 3.60%. Eligibility criteria include opening a bank account with the institution, a direct payroll deposit of at least 3,000 euros, and life insurance coverage as part of the package.
Another notable option is Open Bank. Its EuriborTIN is plus 0.60% with an APR around 4.60%. Qualifying conditions require residency payroll and the purchase of two insurance policies, namely life and home protection.
Abanca offers variable mortgages featuring a TIN of plus 0.60% and an initial-year rate of 1.40%, with an APR of 5.69%. The prerequisites include direct payroll debit, completing 24 purchases annually with the business credit card, and obtaining two insurance policies, life and home.
Ibercaja follows a similar pattern for its variable mortgage, listing a Euribor plus 0.60% and a first-year rate of 1.50%, with an APR of 4.88%. The program requires directing payroll through the bank, using Ibercaja’s credit card, purchasing two life and home insurance policies, and maintaining regular contributions to one of Ibercaja’s investment funds.
In summary, EVO and Banco Mediolanum stand out as some of the strongest options in the variable-mortgage market, balancing competitive rates with a manageable set of banking connections. The clear takeaway remains that borrowers should compare offers carefully to secure the best loan terms in today’s landscape, especially as policy signals from the ECB evolve and influence lenders’ pricing strategies.