Euribor rose again, reaching 0.992%. That figure sits about 300% higher than the level recorded in the same month of 2021, which was -0.491%. Banks have kept a steady trend toward floating-rate mortgages, and many borrowers are now lining up for these options.
For someone exploring this mortgage type, the market currently features banks offering notably attractive terms. But will those favorable conditions endure? Simone Colombelli, head of mortgages at iAhorro, notes, “Most likely, variable mortgages will hold steady, yet there’s a scenario where the rate could worsen if the commercial and financial logic no longer supports it.”
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To understand the current landscape, it helps to glance at the mortgage market itself. There are several compelling products for clients who prefer variable rates.
One standout option comes from Money Bank. Their variable mortgage features an interest rate of Euribor + 0.78% (0.98% in the first year) and an APR of 1.96%. In exchange, a borrower would simply need to carry damage insurance and maintain an account with the bank. Additionally, there is no TIN payment required for the first three months after signing, a cushion that can ease the initial home-purchase expenses.
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Another notable product is the EVO variable mortgage. By directly debiting a salary, unemployment benefit, or pension exceeding 600 euros and securing home insurance, a borrower can obtain a loan with Euribor + 0.75% (0.95% in the first year) and an APR of around 1.81%.
Open Bank is not far behind. By signing a home insurance contract and directing payroll deposits to the bank, a borrower can secure a loan with an APR of Euribor + 0.70% (1.70% in the first year) and an APR around 2.45%. This remains a low-interest option with a relatively light bond structure.
If a reader is after several linked mortgages, another product worth considering is Banco Mediolanum’s Freedom Mortgage. Euribor has a TIN of +0.99% (1.50% in the first year) provided that payroll or recurring income is credited directly and life insurance is in place.
Mortgages became around 1.5% more expensive last year, but big jumps are unlikely
On the whole, the market shows signs of caution. There is still appetite for lower-rate options, but lenders often couple attractive rates with a bundle of required protections and products. For readers seeking the smallest possible interest, a bank offers Euribor + 0.75% (1.25% in the first year) with a 2.19% APR. The practical trade-off is typically multiple contractual connections, including two insurances (life and property), a pension plan, and a bank account with the lender.
Kutxabank presents another lower-TIN option at Euribor + 0.64% (0.79% in the first year) with a 2% APR. However, qualifying for these rates usually means meeting several conditions: direct payroll deposits into the borrower’s account, pension plan contributions of at least 2,000 euros annually, and home insurance coverage.
These examples illustrate that lenders offering lower TINs often require a broader package of products. The key question for borrowers is whether assembling multiple products is cost-effective in the long run. Sometimes, paying a slightly higher rate over time ends up cheaper than taking on a long list of mandatory connections.