Mortgage variables remain at the heart of the industry. Euribor closed April around 3.757%, inching toward 4%. Yet, all signals point to a window of stability in the near term.
That period of stability may arrive soon. Experts expect Euribor to reach 4% first. It could appear in May’s daily data or in the June average, notes Simone Colombelli, director of mortgages at iAhorro.
As a result, banks are reshaping the trend. In 2022, the bank’s rate moves often diverged from Euribor by as much as a full percentage point compared with what the European Central Bank (ECB) communicated. A month later, the gap vanished. Today, banks reclaim control of mortgage offers, determining the rate at which offers rise or fall, Colombelli explains.
Many organizations continue to promote variable-rate mortgages, offering additional incentives on these loans. Fixed baselines of more than 12 months can extend to 24 or even 36 months, reducing the spread as time goes on, according to the iAhorro expert.
New ECB rate hike: what does it mean?
One example is EVO, which extends the fixed period for variable mortgages. It offers a fixed rate of 2.20% for the first two years and Euribor + 0.48% thereafter. Payroll or pension direct deposits above 600 euros and home insurance are typical requirements.
Other lenders have chosen to offer very narrow spreads. Mediolanum Bank, for instance, features Euribor + 0.79% (0.99% in the first year) and an APR around 3.60%. Requirements typically include opening a business account, a stable income of at least 3,000 euros per month, and life insurance coverage.
Unicaja remains a notable option. Its variable mortgage shows Euribor + 0.50% (1.49% in the first year) with an APR near 4.69%. Applicants usually need monthly income above 2,500 euros, payroll direct deposits, a home purchase, and several insurance products such as life or temporary disability insurance; additional products like car or health insurance, plus retirement or mutual fund contributions, can be required.
EN also offers a variable-rate loan with few prerequisites. With payroll direct debit, monthly deposits above 600 euros, or a minimum daily balance of 2,000 euros, plus two insurance policies (life and home), borrowers can benefit from Euribor + 0.59% (1.50% in the first policy year).
BBVA is another option worth noting. With payroll direct deposit and two required insurance policies (home and loan depreciation), borrowers may obtain Euribor + 0.60% (1.49% in the first year) and an APR around 4.97%.
Is it worth getting a variable mortgage?
Variable mortgages have added roughly 300 euros in monthly payments for many borrowers who are reassessing this option this month. A variable-rate loan may not be the best choice at the moment, depending on individual needs.
That said, the decision hinges on personal circumstances. For someone aiming for a shorter amortization period, such as 15 years, a variable mortgage can still be a viable way to lock in competitive rates while keeping upfront costs reasonable.
First and foremost, comparing offers remains the best path to favorable loan terms. Experts encourage using a trusted comparison tool to uncover conditions that may not be evident by going directly to bank branches, ensuring buyers get the most value from their mortgage decisions.