The Euribor is the main official reference index that is usually taken to fix the interest rates of the mortgage loan. It is defined as the simple average of the daily interest rates, applied for cross operations for a period of one year in the interbank deposit market in the Monetary Union area, among the financial institutions with the highest level of business.

Euribor is the rate at which financial institutions lend to each other in the interbank market of the Euro. As we have said, it is the simple arithmetic average of the daily values ​​of the market days of each month of the interest rate published by the European Banking Federation for deposit operations in euros with a term of one year. In practice, it is calculated on the basis of the offer prices of the loans made by the main European banks.

It replaced Mibor, as a consequence of its entry into the European Union and the transfer of powers from the Bank of Spain to the European Central Bank.

Review of mortgages with Euribor.

Most variable rate mortgages are reviewed with the Euribor, because this index shows lower fluctuations throughout the loan period.

For this reason, it is important to follow the evolution of this index and its annual fluctuations in the month in which we have to review the variable rates, in order to set the monthly loan repayment installments for a year.

Video: EZB Leitzinssatz vs. Euribor - Worin liegt der Unterschied? (January 2022).