Euribor and mortgage credit: Complete guide 2026.

Has your monthly mortgage payment increased significantly? There are savings solutions that can help, such as negotiating conditions with the bank or transferring the financing to a new financial entity. Contact the credit intermediaries at Poupança no Minuto and proceed today with the free and personalized process.

But first, let's understand what Euribor is and why it affects the payments of variable rate mortgage credits.

What is the origin of Euribor?

Euribor represents an abbreviation of European Interbank Offered Rate, a European-level reference rate. Essentially, it is the reference based on the average interest rates practiced by several banks in the eurozone, through the loans they grant to each other. It can relate to various terms, such as one week, one month, three months, with the most common being six and 12 months for housing credit.

Since banks also need financing, Euribor is the interest rate that serves this purpose. This is because it reflects what a panel of 52 banks in the European Union, including Caixa Geral de Depósitos, charges to lend money to each other without guarantees. To arrive at the final rate value, 15% of the highest rates and 15% of the lowest rates are excluded.

The Euribor fluctuates according to the forecast of interest rate cuts or increases by the European Central Bank (ECB). This means that Euribor rates predict the movements of reference rates set by the central bank. The goal is to have controlled inflation, around 2%: so whenever inflation rises in the Eurozone, the ECB raises interest rates, and Euribor follows this trend.

This was a rate that emerged with the creation of the Euro on January 1, 1999. It serves as a reference for various products, with a focus on housing credit, savings accounts, or treasury certificates.

How has the Euribor behaved over time?

The history of Euribor shows some significant peaks in the last decades. In the year of its creation (1999), rates reached 3.23% (6 months) and 3.21% (12 months), peaking at 5.3% in June 2000. In the following years, it dropped until 2005, then rose again to 5.5% in 2008.

After 2008, it fell to negative values in 2016. But in 2022 it skyrocketed with post-pandemic inflation and the Russia-Ukraine war. In 2026 it stabilizes at approximately 2.5% below recent highs.

Behind the peaks: global crises affect ECB inflation and interest rates.

Euribor relationship and housing loan installment

In variable rate mortgage loans, which represent the majority in Portugal, the value of the monthly installment is calculated by adding the Euribor to the spread. The spread is the fixed margin of the bank, usually around 1 percent.

The loan review follows the term of the chosen Euribor in the contract. If you chose a six-month Euribor, the installment is reviewed semi-annually. If you chose a twelve-month Euribor, the installment is reviewed annually.

Practical example with a 150,000 euro loan over 30 years, data from April 2026:

• For a six-month Euribor at 2.45 percent plus a 1 percent spread, the total effective interest rate is 3.45 percent. The monthly installment is 669€.
• If the Euribor rises 0.3 percentage points to 2.75 percent plus the same 1 percent spread, it totals 3.75 percent. The installment rises to €695 per month, representing an increase of 26 euros monthly.

In 2026, with the Euribor around 2.5 percent, the installments stabilized compared to 2022-2024, but fluctuations persist according to the decisions of the ECB and European inflation.

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