The Euribor rate fell this Wednesday for three, six, and twelve months compared to Tuesday. With these changes, the three-month rate, which dropped to 2.049%, remained below the six-month (2.144%) and twelve-month (2.291%) rates. The six-month Euribor rate, which will change in January 2024...
Interest rates on home loans decrease across all terms
Wednesday, 17 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.
