What the Euribor is and how it affects your variable mortgage
The Euribor is a euro money market index measuring the rate at which credit institutions in current and former EU and EFTA countries could obtain unsecured wholesale funding. In a Spanish variable-rate mortgage it can be combined with a contractual spread to recalculate the payment at each reset.
What exactly is the Euribor?
It is a euro money market reference index administered by EMMI. The verified official definition refers to unsecured wholesale funding that credit institutions in current and former European Union and EFTA countries could obtain.
For someone with a mortgage, the practical idea is simpler than the technical definition: the index can be one part of the interest formula for a variable-rate mortgage. If the agreement says the rate is calculated with an index plus a spread, the index provides the changing part and the spread is the percentage agreed with the lender.
The Euribor does not replace other comparison figures. The nominal rate describes the rate applied to a period, while the APRC (TAE; commonly APR) includes more cost elements under the applicable rules. To separate those concepts before comparing offers, see the guide on the nominal rate and APR.
Who calculates the Euribor and how?
The administrator of the Euribor is the European Money Markets Institute, EMMI. According to the verified file, EMMI publishes the Euribor for five tenors: 1 week, 1 month, 3 months, 6 months and 12 months.
The methodology confirmed by EMMI is hybrid and described as a two-level hierarchical approach. As a cautious statement, this guide does not use a different description or assume a three-level methodology. EMMI's official methodology page is the source to consult if you need the full technical explanation.
The Euribor tenor used in a specific mortgage is not inferred from the commercial name of the loan: it must be read in the agreement and in the pre-contractual documents. The rule that affects your payment is the one written in your own documentation.
How is it applied to my mortgage?
It is applied through the formula agreed in the contract: reference index plus spread, with a reset frequency stated in the documentation. The verified sources do not set one single reset frequency for all variable-rate mortgages.
The FEIN (the Spanish binding offer document) must state the frequency of later resets and, where an external index is used, the reference rate and the percentage value representing the spread. Order EHA/2899/2011 also records the formula of reference index plus spread in the pre-loan information.
Hypothetical illustrative example: a €150,000 loan over 25 years, French amortisation system and a 1% spread. If a reset moves from a hypothetical 1% index to a hypothetical 2.5% index, the resulting rate would move from 2% to 3.5%. Under those assumptions, the rounded monthly payment would move from €635.78 to €750.94, a difference of €115.15 per month.
When reading an offer, separate three layers: the index, which changes according to the agreed reference; the spread, which is part of the conditions negotiated with the lender; and the reset schedule, which determines when the applicable rate is recalculated. That separation helps you check whether a simulation mirrors your contract or only an illustrative scenario.
That example is not a real Euribor value or a forecast. It is only the mechanism: index, spread, remaining term and outstanding principal interact. To estimate your own case, enter the figures from your agreement or FEIN in the calculator and test scenarios with hypothetical rates.
What other official indices exist?
Circular 5/2012 of the Banco de España treats several mortgage-market reference rates as official. The verified list includes the Euribor in five tenors, IRPH entidades, public debt, five-year IRS and a rate based on the euro short-term rate.
| Official index | Verified reference |
|---|---|
| Average rate of mortgage loans over three years for free-market housing granted by credit institutions in Spain | Known as IRPH entidades; calculated with APR-type rates reported to the Banco de España |
| Average rate of housing loans between one and five years granted by credit institutions in the euro area | Official index provided for in Circular 5/2012 |
| Internal rate of return in the secondary market for public debt between two and six years | Reference based on public debt |
| Euribor at one week, one month, three months, six months and one year | Tenors published by EMMI and treated as official by the Circular |
| Interest rate swap (IRS) at five years | Five-year swap-rate reference |
| Reference interest rate based on the euro short-term rate (€STR) | Reference included in the verified official list |
IRPH entidades is the average rate of mortgage loans over three years, for the purchase of free-market housing, granted by credit institutions in Spain. The Banco de España calculates and publishes it, and is considered the administrator of the index.
Law 14/2013 set, with effect from 1 November 2013, the disappearance of IRPH bancos, IRPH cajas and the active reference rate of savings banks, commonly referred to as the CECA index. Replacement is first by the substitute index agreed in the contract and, if none exists or it has also disappeared, by IRPH entidades plus a spread calculated under the legal rule. If you are looking at a lender change, the guide to switching your mortgage to another bank explains that procedure separately.
Can my mortgage have a floor clause or negative interest?
In contracts within the scope of Law 5/2019, variable-rate operations may not include a lower limit on the interest rate. In those same operations, remunerative interest may not be negative.
The rule is in Articles 21.3 and 21.4 of Law 5/2019. The precision matters: the statutory prohibition on a floor clause is stated for contracts within the scope of that law, without automatically extending it to earlier contracts. Law 5/2019 was published on 16 March 2019 and came into effect on 16 June 2019; its first transitional provision sets the general rule of non-application to earlier loan agreements, with exceptions such as later novations or subrogations.
The fact that the Euribor had negative monthly averages in the past does not, by itself, mean that a mortgage will pay interest to the borrower. In contracts subject to Law 5/2019, the legal limit cited above prevents the remunerative interest in those operations from being negative.
What information must the bank give me before I sign a variable-rate mortgage?
It must give you the applicable pre-contractual information, including the FEIN where required, and a separate scenario document for variable-rate loans. The specific scenario obligation is in Article 14.1.c) of Law 5/2019.
The verified file distinguishes that obligation from the FiAE: letter b) of Article 14.1 governs the Standardised Warning Sheet, while letter c) requires a separate document with special reference to periodic payments in variable-rate loans. Order EHA/2899/2011 specifies that this document must present at least three payments calculated with maximum, average and minimum levels of the index used in the FEIN over the last twenty years, or the available period if shorter.
The verified sources also set requirements for indices used in variable-rate loans. Order EHA/2899/2011 requires them to be calculated at market cost, not to be susceptible to influence by the lender itself, and to aggregate the data through an objective mathematical procedure. For contracts within the scope of Law 5/2019, Article 21.2 records substantially equivalent requirements: the index must be clear, accessible, objective and verifiable, as well as calculated at market cost.
With a variable-rate mortgage, the first payment is not enough. Check which index is used, which spread is added, how often it resets, which scenarios the lender gives you and how tied products affect the cost. To compare mortgage types without using forecasts, see the guide to fixed or variable mortgage.
How far has it risen and fallen?
The official monthly Banco de España series for the 12-month Euribor confirms two dated historical facts: it exceeded 5% in several months of 2008 and had negative monthly averages from February 2016 to March 2022, both included.
In 2008, the Banco de España monthly series shows figures above 5% at least from June to October: June 2008, 5.361%; July 2008, 5.393%; August 2008, 5.323%; September 2008, 5.384%; and October 2008, 5.248%. According to the verified official CSV, July 2008 was the highest monthly figure observed in that year, at 5.393%.
The confirmed negative range in monthly averages runs from February 2016, at -0.008%, to March 2022, at -0.237%. These are dated historical data. They do not allow a specific contract value to be inferred or future resets to be anticipated.
Frequently asked questions
Who administers the Euribor?
The Euribor is administered by the European Money Markets Institute (EMMI). The page explains that it is a euro money market reference index and that its official definition refers to unsecured wholesale funding that credit institutions in current and former European Union and EFTA countries could obtain.
Which Euribor tenor is used in my loan?
The applicable tenor is not inferred from the loan's commercial name. It must be read in the agreement and in the pre-contractual documents. EMMI publishes five tenors, but the rule that affects your payment is the one written in your own documentation.
How does the payment change at a reset?
In a variable-rate loan, the agreed formula combines the reference index, the spread and the reset schedule. In the guide's example, with a €150,000 loan over 25 years and a 1% spread, moving from a hypothetical 1% index to 2.5% would raise the rate from 2% to 3.5% and the rounded payment from €635.78 to €750.94.
Which documents should I review before signing a variable-rate mortgage?
Before signing, review the FEIN, the index used, the spread, the reset frequency, the scenarios and the total cost. The guide states that Article 14.1.c) of Law 5/2019 requires a separate scenario document for variable-rate loans, and that the FEIN must state later reset frequency when applicable.
Summary
- The Euribor is a euro money market index administered by EMMI; it measures unsecured wholesale funding obtainable by credit institutions in current and former EU and EFTA countries.
- EMMI publishes five tenors: 1 week, 1 month, 3 months, 6 months and 12 months; the verified methodology is hybrid and two-level.
- In a variable-rate mortgage, the formula must be agreed: index plus spread and reset frequency explained in the documentation.
- Law 5/2019 prohibits a floor clause and negative remunerative interest in variable-rate operations within its scope.
- Before signing a variable-rate mortgage, review the FEIN, the Article 14.1.c) scenarios and the total cost, not only the first payment.
Simulate your payment with figures from your agreement or FEIN
Official sources
- EMMI, About Euribor® — official Euribor definition.
- EMMI, Euribor® FAQs — administrator and published tenors.
- EMMI, Euribor® Methodology — two-level hybrid methodology.
- Law 5/2019, BOE-A-2019-3814 — Articles 14 and 21, Annex I and transitional provisions.
- Law 14/2013, BOE-A-2013-10074 — disappearance and replacement of former IRPH bancos, IRPH cajas and CECA index.
- Order EHA/2899/2011, BOE-A-2011-17015 — index requirements, pre-contract information and scenarios.
- Circular 5/2012 of the Banco de España, BOE-A-2012-9058 — official mortgage-market reference rates.
- Banco de España, mortgage-market reference interest rates — explanatory note on official indices.
- Banco de España, Statistical Bulletin, chapter 19 — access to the 12-month Euribor historical series.
- Banco de España, CSV table 19.1 — historical monthly data for the 12-month Euribor.
Notice: this guide and the calculator are for information and educational purposes. They are not financial, tax or legal advice, nor a loan offer. The rules that apply depend on the agreement, signing date and documents delivered by the lender. Always check the terms with your bank, the official sources and, if you need it, a professional. The lender's FEIN sets out the binding offer and the figures calculated under its conditions and assumptions.
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