Spanish variable mortgages face fresh pressure after the Euribor reached 3.24% in September. Annual reviews could add more than €1,000 to some household costs.
The Euribor averaged roughly 3.238% to 3.249% in September 2026. The monthly figure reached 3.24%, up from 2.95% in August. It has now risen for four straight months.
The rate is at its highest level since July 2024, when it reached 3.526%. September was one of the most expensive months of 2026 for borrowers whose mortgages are tied to the benchmark.
That matters at review time.
Borrowers with annual or six-monthly reviews will feel the increase first. The index stood at 2.17% in September 2025 and averaged 2.56% in March. The current figure is 1.7 points and 0.56 points higher, respectively.
On 10 September 2026, the European Central Bank raised its key rates by 25 basis points: the deposit facility rate reached 2.50%, the main refinancing rate 2.65% and the marginal lending facility 2.90%.
Consider a €150,000 mortgage over 25 years with a one-point spread over the Euribor. An annual review would add about €85 to the monthly payment. That is roughly €1,045 more over a year.
A six-monthly review would raise the payment by around €58 a month. The final figure depends on the remaining capital, the agreed spread and the term left on the loan.
The increase could be larger for some borrowers.
Online comparison service Kelisto estimates that average monthly payments could rise by more than €100. The gap between the estimates comes from the structure of each mortgage, not from a different benchmark rate.
Pressure has been building since January.
According to Spain’s INE, mortgages constituted on homes in July 2026 carried an average interest rate of 3.01% and an average term of 26 years. Fixed-rate loans accounted for 62.3% of new mortgages, while variable-rate products represented 37.7%.
The Euribor fell to 2.221% in February. It then rose to 2.565% in March amid economic uncertainty linked to the war in the Middle East.
The rate kept climbing as the conflict involving Iran and the closure of the Strait of Hormuz pushed up oil and energy prices. Spain's latest inflation figure from the INE is close to 5%. That is the highest level since February 2023.
In September, the European Central Bank lifted its rates by 25 basis points. The Federal Reserve also raised its rate by a quarter of a point.
The ECB tied its decision to inflation risks and its effort to keep inflation on course for a 2% medium-term target. Borrowing has become more expensive. Protection against another rate change now looks more attractive to many buyers.
The July figures show the shift. Fixed-rate loans made up 62.3% of mortgages on homes constituted that month. Variable-rate products accounted for 37.7%.
Financing costs already shape household decisions in Spain's housing market. Earlier housing analysis reported that Europe's housing squeeze is also linked to supply and demand problems through earlier housing analysis. For variable-rate borrowers, the September figure creates a direct problem: the next review may bring a much higher monthly bill.
The effect is usually stronger on loans with shorter review periods. It is also stronger when a large share of the original capital remains unpaid.
Forecasts are split. Joan Balasch of Housfy expects the Euribor to settle near current levels and stop rising for the rest of the year, even if the ECB raises rates again before the end of 2026.
Balasch says the interbank market had already priced in that move. He expects the index could return to between 2.5% and 2.7% by the end of 2027 if inflation eases.
Pedro Ruiz of Kelisto sees more risk. He says the index could stay around 3.1% to 3.3% if energy prices moderate and the ECB makes no further increase.
A fresh inflation surprise would change that outlook. If the central bank raises rates again, the Euribor could finish 2026 above its current level.
Variable borrowers have little room for error.
A fixed mortgage does not solve the wider housing-cost problem. The July figures do show that many new borrowers are choosing stable payments over exposure to another Euribor rise.
For existing households, two details will decide the impact: the next review date and the capital still outstanding. Those figures will determine how much of the increase reaches the monthly budget.
