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Euríbor

The interest rate at which major European banks lend money to one another, used as the reference rate for most variable-rate mortgages in Spain.

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The Euríbor (Euro Interbank Offered Rate) is the average rate at which eurozone banks lend money to one another over various terms. In Spain, the 12-month rate is the one most commonly used as the reference index for variable-rate mortgages.

How it affects your mortgage

On a variable-rate mortgage, the payment is recalculated periodically (usually every 6 or 12 months) by adding the agreed spread to the Euríbor value at that time. If the Euríbor goes up, your payment goes up; if it goes down, your payment goes down.

Relationship with the ECB

The Euríbor largely tracks the interest-rate decisions of the European Central Bank, although they aren't exactly the same thing: the ECB sets the official reference rate, while the Euríbor reflects the interbank market's expectations about those rates.

View Euríbor trends