The truth is evident: variable-rate mortgages are drawing the banks’ attention. With Euribor starting June at 0.287%, lenders are signaling a clear strategy to lean on this benchmark when pricing new loans.
Will this trend persist? It hinges on the Euribor’s direction, which in turn depends on two major factors: Russia’s ongoing war in Ukraine influencing inflation and energy supply, and decisions by the European Central Bank (ECB).
Rumors and leaks suggest the ECB could raise rates in July. If Christine Lagarde’s leadership pushes that move forward, Euribor could gain momentum quickly, potentially hitting around 0.5% within a month or two, says Simone Colombelli, mortgage manager at iAhorro.
For now, variable-rate mortgages remain available at prices well below the peaks seen in recent months. This creates a timely opening for individuals considering this type of loan.
Kutxabank emerges as one of the most competitive options. Euribor plus 0.64% (0.79% for the first year), with a TIN of 1.28% and an APR of 1.28%, marks a noticeable decline of about 0.47% from prior periods. To qualify, borrowers must meet several requirements: a payroll deposit of 3,000 euros or more per month, a domiciling of payments, contributions of at least 2,000 euros annually to Kutxabank pension plans, and the holding of home insurance.
EVO presents another attractive option with a variable-rate mortgage set at Euribor plus 0.75% (first year at 0.95%), TIN of 1.22%, and APR of 1.22%. With a mortgage of 200,000 euros, the estimated monthly payment would be around 646.68 euros. This product requires fewer conditions than Kutxabank: payroll, pension, or unemployment benefits exceeding 600 euros, and home insurance.
BBVA also offers a strong proposition. By directly debiting payroll and underwriting two insurance policies (home and loan protection), a borrower can secure Euribor plus 0.79% TIN (0.89% in the first year) and an APR near 1.83%.
ING offers a product with a similar TIN but different terms: Euribor plus 0.79% (0.95% in the first year) and around 1.64% APR. In this case, ING requires customers to provide payslips and to take out two insurances (life and home).
Mediolanum Bank and Liberty Bank also present competitive options, featuring Euribor plus 0.99% with a first-year rate of about 1.50%, achievable by directing payroll and enacting a life insurance policy.
Is getting a variable mortgage worthwhile?
Many lenders aim to make variable-rate mortgages as appealing as possible, but the suitability for an individual depends heavily on personal circumstances.
For those seeking short-term financing, a variable mortgage can be attractive because it may avoid large, sudden shifts in Euribor. Yet for someone planning a 30- or 40-year loan, it is prudent to explore all options since Euribor is likely to fluctuate multiple times over such a long horizon.
Prospective borrowers should evaluate a range of scenarios, including potential rate increases, fixed-rate alternatives, and hybrid products. A careful assessment helps determine whether a variable-rate loan aligns with long-term financial goals, cash flow expectations, and risk tolerance.
In summary, the current landscape shows multiple lenders offering competitive Euribor-based terms, each with its own set of requirements. Consumers are encouraged to compare the total cost of borrowing, including first-year promotions, ongoing fees, and insurance obligations. As market conditions evolve, staying informed about ECB policy signals and European energy dynamics remains essential for anyone considering a variable-rate mortgage.
Notes: The discussion reflects market conditions and lender terms that can change. Prospective borrowers should verify the latest rates and eligibility criteria directly with banks and consider independent financial advice.