The Euribor rate, the benchmark for mortgage credit, fell on Wednesday for three and six months but rose for twelve months, reaching its highest value for the longer term since April. The three-month rate decreased to 2.082%, down from 2.088% on Tuesday, and remained below the six-month rates.
Euribor rate falls for three and six months but rises for twelve months
Wednesday, 10 December 2025RSS
Context & Explainers
Euribor (Euro Interbank Offered Rate) is the benchmark interest rate at which major European banks lend to each other. It directly affects most variable-rate mortgages in Portugal, where the vast majority of home loans are indexed to 3-month, 6-month, or 12-month Euribor rates.
When Euribor rises, monthly mortgage payments increase at the next review date; when it falls, payments decrease. The European Central Bank's (ECB) monetary policy decisions are the primary driver of Euribor movements — rate hikes push Euribor up, while cuts bring it down.
Euribor peaked above 4% in late 2023 after aggressive ECB tightening, then gradually declined through 2024–2025 as the ECB began cutting rates. Portuguese homeowners with variable-rate mortgages should track Euribor trends and their mortgage review dates to anticipate payment changes.
