Variable-rate mortgage

Calculate the payment of a variable-rate mortgage, tied to Euribor plus a fixed spread, which is periodically reviewed over the life of the loan.

When should you use this calculator?

This page is designed for anyone who's already decided they want a variable-rate mortgage and wants to calculate their exact payment. The interest type is pre-selected as "Variable"; enter the spread your bank offers (Euribor is filled in automatically with its live value) to see your current payment.

Practical example

On a variable mortgage, the payment is recalculated periodically (usually every 6 or 12 months) by adding the Euribor value at that time to the fixed spread agreed with the bank (for example, Euribor + 0.99%). For €200,000 repaid over 25 years with an initial rate of 3% (approximating Euribor + spread), the starting payment is €948.42 a month, but that figure will change at each review as Euribor moves.

Practical tips

The advantage of a variable mortgage is that its initial rate is usually somewhat lower than an equivalent fixed mortgage's, and you benefit directly if Euribor falls in the future. The trade-off is uncertainty: your payment can rise at each review if Euribor rises, so it's worth calculating whether you could afford the payment with a considerably higher Euribor than today's before deciding.

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Frequently asked questions

What is a variable-rate mortgage?

It's a mortgage whose interest rate is calculated by adding a fixed spread agreed with the bank to Euribor (the most common reference rate), and is periodically reviewed (usually every 6 or 12 months) based on Euribor's value at each point.

How do I know how much my payment will rise if Euribor rises?

You can simulate it in this same calculator by entering a higher Euribor value in the corresponding field, to see how your payment would change under that scenario before it actually happens.

How often is a variable mortgage reviewed?

It depends on what's agreed in the deed, but the usual review period in Spain is every 6 or 12 months, using the Euribor value in effect on the review date.

Can I switch from variable to fixed if I'm worried about rate hikes?

Yes, through a novation with your bank or a subrogation to another bank, though both usually come with costs worth comparing against the certainty you'd gain before deciding.