Euribor May 2026 at 2.804%: How it affects your variable mortgage

Key data

Holders of variable-rate mortgages indexed to Euribor will see their monthly payment reduced at the next annual review: the index stands at 2.804% in May 2026, far from the historical peaks exceeded in 2023-2024. The Resolution of June 1, 2026 from the Bank of Spain publishes these values in accordance with Circular 5/2012, which requires monthly publication of official reference rates for the mortgage market.

These indices are not indicative: they are the legally valid values for calculating reviews of millions of mortgages in Spain. If your mortgage contract includes an annual or semi-annual review clause indexed to Euribor, the value published in this BOE is the one your bank must apply.

What does this regulation establish?

The Bank of Spain publishes monthly, in compliance with Circular 5/2012, the official reference interest rates for the mortgage market. These indices are the only legally recognized rates for reviewing variable-rate mortgage loans in Spain.

The values published for May 2026 are as follows:

The Mibor coincides in value with the 1-year Euribor (2.804%), but its official validity is restricted: it only applies to mortgages formalized before January 1, 2000. For other contracts, the standard reference index is the 1-year Euribor.

Economic and operational impact

The progressive decline of Euribor from the historical highs of 2023-2024 has a direct and positive effect on mortgage payments for borrowers with annual reviews. Each tenth of a percentage point reduction in Euribor translates into real monthly savings for the mortgage holder.

For financial entities, the decline in Euribor compresses the net interest margin in the variable-rate mortgage portfolio, which can affect the profitability of loans indexed to this rate. Entities must update their review systems to apply the newly published value.

For variable-rate mortgage holders, the impact is a relief in the monthly financial burden compared to the years of high rates. The magnitude of savings depends on the outstanding capital, the agreed spread, and the remaining term of the loan.

Who does it affect?

• Holders of variable-rate mortgages indexed to 1-year Euribor: the vast majority of variable-rate mortgages in Spain. Their payment is recalculated by applying the new value of 2.804% plus the spread agreed in the contract.
• Holders of mortgages formalized before January 1, 2000 indexed to Mibor: the applicable value is also 2.804%, identical to Euribor this month.
• Mortgages indexed to 5-year IRS: the applicable index is 2.886%.
• Mortgages indexed to 1-year €STR: the applicable index is 1.956%, the lowest of the four published.
• Financial entities and banks operating in Spain: obligated to apply these values in contractual reviews and update their payment calculation systems.
• Financial advisors, wealth managers, and mortgage brokers: must communicate these values to their clients with upcoming reviews.

Practical example

Suppose a borrower with a variable-rate mortgage with the following conditions:

• Outstanding capital: €150,000
• Remaining term: 20 years
• Agreed spread: Euribor + 0.99%
• Review: annual, with May Euribor

With the May 2026 Euribor at 2.804%, the applicable rate at the next review will be 2.804% + 0.99% = 3.794%. This rate is applied to the outstanding capital to recalculate the monthly payment for the following 12 months.

If at the previous review (May 2025) Euribor had been higher—as occurred at the 2023-2024 highs, when it exceeded 4%—the borrower would now be paying a lower monthly payment thanks to the progressive decline in the index. The difference between a 4% Euribor and the current 2.804% represents, for this example, an approximate saving of between €80 and €100 monthly in the payment, depending on the term and exact capital.

What should those affected do now?

1. Locate your mortgage review date: check your mortgage deed to find out if the review is annual or semi-annual and in which month it applies. If the review is in June or July 2026, the May 2026 value (2.804%) is the one your bank must use.
2. Identify the reference index of your contract: verify if your mortgage is indexed to 1-year Euribor, Mibor, 5-year IRS, or 1-year €STR. Each has a different value published in this resolution.
3. Calculate your new payment: add the value of the published index plus the spread of your contract. That is the interest rate that will be applied to your outstanding capital during the next review period.
4. Verify your bank's settlement: when you receive the payment review notification, check that the index value applied matches the one published in the BOE (2.804% for Euribor and Mibor, 2.886% for 5-year IRS, 1.956% for 1-year €STR). Any discrepancy is claimable.
5. Financial entities: update mortgage review calculation systems with the newly published values and notify affected customers in accordance with contractual deadlines.

Official source

View complete regulation at official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-11844