Trends on Euribor and the mortgage market in a shifting economy
There was an early belief that Euribor would hover near 4 percent as March ended, but the real market move unfolded in unexpected ways. On a Friday in mid-March, a major event occurred when Silicon Valley Bank in the United States collapsed, sending ripples through global finance.
Euribor then started showing a daily rate around 3.3 percent, a notable departure from levels seen before the turmoil. By month end, the reference rate stood at 3.647 percent, signaling a pause in the quick climb rather than a sharp rise to 4 percent.
Does this mean Euribor is taking a breather? Not at all. Market observers noted continued volatility in Euribor values, with some iteration of optimism about reaching 4 percent during the spring. This view comes from mortgage professionals who monitor daily movements and project where the index could head in the near term.
Even as Euribor fluctuates, lenders have adjusted their products with small but meaningful changes. Variable-rate mortgages still present very favorable terms in many cases, and some lenders have maintained attractive conditions for new borrowers.
EVO remains among the strongest variable-mortgage options on the market. It features a Euribor-based interest rate of +0.50 percent, effectively 0.99 percent for the first year, and an APR around 4.05 percent. In addition, borrowers should expect requirements such as payroll processing, unemployment or pension benefits, and home insurance contracts exceeding a threshold in the vicinity of 600 euros.
Unicaja also offers a Euribor-based rate of +0.50 percent (0.99 percent in the first year). However, meeting these terms typically involves higher income and several ancillary obligations, including payroll domicile and essential receipts, as well as commitments to life or disability insurance and to maintain certain car or health protections, alongside retirement or mutual fund contributions.
Another notable option in the variable-mortgage landscape is Mediolanum Bank’s Mortgage of Freedom. It presents a Euribor TIN of +0.79 percent (0.99 percent during the first year) with an APR near 3.60 percent. Eligibility includes opening a business account, maintaining monthly income of at least 3,000 euros, and obtaining life insurance.
BBVA’s variable-rate offering also warrants consideration. Euribor is linked to an APR of +0.60 percent (1.49 percent during the first year), delivering an average APR around 4.86 percent when payroll is domiciled and two insurance policies are secured for home and loan depreciation.
Similarly, Ibercaja’s variable mortgage aligns with Euribor +0.60 percent (1.50 percent in the first year) and about 4.82 percent APR. The terms typically require payroll and regular income at the residence, use of a business credit card, two insurance policies (life and home), and regular contributions to Ibercaja mutual funds.
Is mortgage substitution still a viable option?
Switching mortgages has become a practical choice for many, offering a path to lower monthly payments. The mortgage director at iAhorro notes that the conditions for replacing a mortgage remain favorable.
As lenders adjust their offerings, borrowers can transfer a variable-rate mortgage to another bank or switch to a fixed-rate loan. The question many ask is whether such a change is worthwhile. Industry voices indicate that current terms remain anchored below Euribor in some fixed options, with some products still dipping under the 3 percent TIN range.
Overall, the landscape shows continued flexibility. Customers can explore whether moving to a fixed-rate product or transferring to a different lender aligns with their financial goals, especially when the savings from a lower monthly payment are meaningful and the long-term costs are carefully weighed. (Source: iAhorro insights)