The Euribor, the index most variable-rate mortgages in Spain are tied to, rose again in May 2026 to nearly 2.8%. It was its third consecutive monthly increase and its highest level in more than a year and a half. If you are thinking of buying a home in Málaga or on the Costa del Sol, it is worth understanding what lies behind this move and how it affects your budget.
A 2.8% that marks the third rise in a row
The index ended May at an average close to 2.804%, its highest reading since September 2024. In barely three months it has added around six tenths of a point, and compared with the same month last year it is up about eight tenths. Behind it are expectations around the European Central Bank's interest rates and tension in the energy markets, which have pushed the cost of money higher.
How much it adds to your mortgage repayment
The effect is tangible for variable-rate mortgages being reviewed right now. For an average loan of 150,000 € over 25 years with a 1% margin, the monthly payment rises by around 60 €, that is, roughly 720 € more a year. On a 300,000 € mortgage under the same terms, the increase is about 120 € a month, or around 1,440 € a year. It is not a dramatic jump, but it is a cost worth planning for.
The Government opens a consultation on reference indices
At the same time, the Government has launched a public consultation to study alternatives to the indices used as a reference for variable-rate loans, and is asking whether the official list should be revised. The window to take part stays open until 19 June. For anyone who holds, or is about to take out, a variable-rate mortgage, it is a debate worth following, as it could shape how repayments are calculated in the future.
What is expected from the Euribor, and what it means for buying here
Forecasts are moderate. The Funcas panel expects the Euribor to end 2026 near 2.8% and to ease gradually towards 2.5% by the end of 2027. That said, if the ECB decides to raise rates at its June meeting, the index could climb above 3% over the summer, especially if oil stays above 90 dollars a barrel. Day to day, the daily rate has already softened to around 2.7%.
On the Costa del Sol, the picture has its own nuances. A large share of demand comes from international buyers who purchase in cash or finance the deal in their home country, so the Euribor affects them less. For buyers who do take out a mortgage in Spain, the key is to compare fixed and variable options carefully before signing.
Three practical tips before you sign
- Compare fixed and variable: with the Euribor rising, a competitive fixed rate brings long-term peace of mind.
- Get a pre-approval before you start your search: you will know your real budget and negotiate from a stronger position.
- Lean on local support for your NIE, the mortgage and the notary signing, especially if you are buying from abroad.
Conclusion
With the Euribor at 2.8%, variable mortgages get a little more expensive, yet the Costa del Sol market remains solid and appealing, driven by international demand that does not rely on financing alone. If you are weighing up buying or selling in Málaga or on the Costa del Sol, at EVS Property we help you make sense of the numbers, guide you through the NIE and the mortgage, and show you the properties that fit your plan. Get in touch and we will answer your questions with no obligation.
Data source: Idealista (May 2026 Euribor).
