Euribor affects every variable mortgage on the Costa del Sol, and in September 2026 it will close with an average close to 3.1%, roughly 93 basis points above September 2025. It is the largest year-on-year increase since November 2023 and the seventh consecutive month of rises. In practice, a €300,000 variable mortgage reviewed now will pay about €157 more per month, almost €1,900 a year. We explain where the rise comes from, what it costs depending on the loan size, and what existing borrowers and future buyers can do.
Why is Euribor rising in September 2026?
The daily index has spent seven consecutive sessions above 3.1% and has touched 3.16%, a level not seen since August 2024. Three factors sit behind it: eurozone inflation remains above 3%, geopolitical uncertainty in the Middle East is pushing energy prices up, and on 10 September the European Central Bank raised its key rates by 25 basis points to 2.5%. The ECB also keeps its 2026 inflation forecast at 3% and revises it upwards for 2027 (2.5%) and 2028 (2.1%), which markets read as a sign that rates will not fall any time soon.
We already analysed on this blog what the ECB's move to 2.5% means for buyers on the Costa del Sol. Euribor is the direct consequence: banks lend to each other at a higher cost and pass it on to variable mortgages at every review.
How much does a variable mortgage payment rise with Euribor at 3.1%?
Benchmark calculations point to about €80 more per month and close to €1,000 a year for an average Spanish mortgage. On the Costa del Sol, however, the average mortgage is considerably larger: according to our market report, the median asking price is around €650,000 and in Málaga city €625,000. We have calculated the real impact for three typical loan amounts, over 30 years with a one-point spread over Euribor, comparing the September 2025 review (Euribor 2.17%) with September 2026 (3.1%).
| Outstanding capital | Payment at Euribor 2.17% | Payment at Euribor 3.1% | Monthly increase | Yearly increase |
|---|---|---|---|---|
| €200,000 | €862 | €966 | €105 | €1,257 |
| €300,000 | €1,292 | €1,450 | €157 | €1,885 |
| €520,000 | €2,240 | €2,513 | €272 | €3,268 |
The third case is equivalent to financing 80% of a €650,000 home, the Costa del Sol median price. The exact figure depends on the outstanding capital, the years already repaid and each bank's spread, but the rule is simple: every €100,000 of debt means about €52 more per month with this increase.
What happens to fixed and mixed mortgages?
Anyone who already has a fixed rate notices nothing: the payment stays the same. The problem is for those signing now. Banks are making new offers more expensive, especially fixed and mixed products, because long-term rates already price in a firm ECB. The mixed mortgage, which already accounts for 15% of new loans in Spain, becomes more attractive as a middle path: a fixed period of 5 to 10 years at a locked rate and variable afterwards, when Euribor will presumably have come down.
Will Euribor keep rising or fall in 2027?
The prevailing view among analysts is that the index will stay around 3.1% until the end of 2026, barring a serious deterioration in the Middle East. For 2027 a gradual decline is expected that would ease reviews. In other words: the hit at the next annual review is almost certain, but it need not repeat with the same intensity the following year.
What to do if you have a mortgage or plan to buy on the Costa del Sol
- If your mortgage is variable: check when your next review falls and estimate the new payment with the table above. If the jump is large, ask your bank for a novation to a fixed or mixed rate and compare it with a subrogation to another lender; since the 2019 mortgage law, switching costs are minimal.
- If you are buying now: negotiate the rate before offers keep climbing and consider a mixed product. With a 20% deposit and a payment below 35% of income, buying remains viable in Málaga, Fuengirola or Estepona.
- If you are buying without a mortgage or with little financing: a high Euribor cools credit-dependent demand and strengthens your negotiating position. In segments such as new builds or second-home areas there is more room to negotiate the price.
- If you are investing to let: other owners' higher payments feed through to rents, and foreign rental demand in Málaga keeps growing. A more expensive mortgage is partly offset by higher rents, but make sure the net yield stays above the cost of financing.
Conclusion
Euribor at 3.1% is not a change of cycle, but it is an expensive year for variable mortgages: between €100 and €270 more per month on the typical Costa del Sol loan sizes. The answer lies in reviewing your current mortgage, choosing carefully between fixed, mixed and variable if you are about to sign, and taking advantage of the fact that dearer credit also softens competition among buyers. At EVS PROPERTY GROUP we guide you through the purchase and connect you with mortgage brokers who work with Spanish and international clients.
Frequently asked questions
What is Euribor at in September 2026?
The 12-month Euribor will close September 2026 with an average of around 3.1%, with daily peaks of 3.16%. A year ago it stood at 2.17%.
How much does a €300,000 mortgage rise with Euribor at 3.1%?
Over 30 years with a one-point spread, the payment goes from €1,292 to €1,450: about €157 more per month and €1,885 a year.
Is a fixed or variable mortgage better in 2026?
With Euribor high and a decline expected in 2027, the mixed mortgage is the most balanced option for many buyers: fixed rate in the early years and variable afterwards. A fixed rate gives full certainty in exchange for a higher rate today.
Can a foreigner get a mortgage in Spain at these rates?
Yes. Spanish banks typically finance 60% to 70% for non-residents, at rates slightly above those for residents. A mortgage broker used to international clients usually secures better terms.
