Euribor Rate Hits New Low, Easing Mortgage Payments for Borrowers
Euribor drops to 2.079%, providing savings for variable mortgage holders in Spain.
Key Points
- • Euribor rate confirmed at 2.079% in July 2025, a new low since 2022.
- • Potential savings of €123 monthly for a €150,000 variable mortgage.
- • Rate has decreased 0.2 basis points from June and nearly 145 basis points from May 2024.
- • Analysts expect Euribor to stay around 2% for the rest of 2025.
The Bank of Spain has confirmed a significant decline in the Euribor rate, which fell to 2.079% in July 2025, marking a new low since the interest rate increases began by the European Central Bank in 2022. This decrease translates into potential savings for individuals holding variable-rate mortgages, as they can expect lower monthly payments.
In comparison to June 2025, when the Euribor stood at 2.081%, this reduction of 0.2 basis points signifies a broader trend of declining rates, down nearly 145 basis points since May 2024.
For example, a borrower with a €150,000 mortgage over 30 years with a spread of 0.99% would save approximately €123 per month, leading to annual savings of around €1,480. As noted by a Europa Press analysis, these savings are more pronounced in the initial years of the mortgage when the outstanding principal is higher.
Looking forward, analysts predict that the Euribor will not change dramatically, stabilizing around the 2% mark for the remainder of the year barring any decisions from the ECB to further cut interest rates. Diego Barnuevo from Ebury indicated that while the rates have settled, the potential for further decreases is limited. Reports from the Funcas panel also suggest the possibility of the Euribor dropping below 2% by late 2025, although the resulting savings for borrowers may diminish as rates approach this new threshold.