Euribor rates for three, six, and 12 months increased today, with the 12-month rate reaching a two-year high. The rise is expected to significantly increase monthly repayments for homeowners with variable-rate mortgages, with some estimates suggesting an increase of up to 118 euros on a 250,000-euro loan.
Euribor rates rise across all major maturities
Tuesday, 1 September 2026AI summary
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.
