Glossary
FinancingAlso: European reference rate
Euribor
The European reference rate used as the index for variable-rate mortgages.
The Euribor is the benchmark interbank interest rate in the euro area. In Spain it serves as the index for most variable-rate mortgages, to which the bank adds a fixed margin called the diferencial.
Its movements raise or lower the monthly payments on variable-rate loans at each review.
For the seller
The level of the Euribor affects the cost of credit and therefore buyers' borrowing capacity, which indirectly weighs on demand and prices.
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