Great news for mortgage holders in Spain: the 12-month Euribor has dropped to 2.143% in April 2025, marking its lowest level since August 2022 and its biggest year-on-year drop since 2009. This movement is set to bring real financial relief to homeowners with variable-rate mortgages, especially across property hotspots like the Costa del Sol.
To put this in perspective:
- In March 2025, Euribor stood at 2.398%.
- One year ago, it hovered at 3.703%.
- That’s a monthly decline of 0.25 points and an annual fall of 1.56 points.
How Much Can You Save?
According to Agencia EFE, the savings are significant:
- For a typical €150,000 mortgage over 25 years at 1% + Euribor, monthly payments could drop by around €130, totaling €1,530 per year.
- For a €300,000 mortgage, this monthly reduction doubles to approximately €260—over €3,000 annually.
ECB Rate Cuts Supporting the Trend
This decline coincides with the European Central Bank’s unexpected rate cut on April 17th, trimming interest rates by 25 basis points to 2.25%. While a pause had been signaled in March, economic uncertainties—particularly new U.S. tariffs—prompted this move.
Forecasts now suggest between two and three additional ECB rate cuts this year, possibly bringing the benchmark rate down to 1.5% by September.
Financial institutions such as Goldman Sachs and Lazard agree on this outlook, citing decelerating inflation and reduced business confidence due to geopolitical trade tensions.
Euribor to Fall Further?
Forecasts from FUNCAS place Euribor around 2.0% by the end of 2025 and at 1.75% in 2026. Meanwhile, fintech firm Ebury suggests an even steeper decline to 1.5%, should the ECB continue lowering rates.
As of late April, Euribor has consistently stayed below 2.1% on a daily basis. On April 23rd, it reached a new low of 2.022%, ending the month slightly higher at 2.049%.
What This Means for Buyers
For international buyers looking at homes in Marbella, Estepona, or other areas of the Costa del Sol, this shift improves affordability. If you’ve been on the fence, lower borrowing costs may make 2025 the perfect time to act.
At NOOK Homes, we’re already seeing increased interest in premium properties as financing becomes more attractive. Whether you’re looking for a villa with sea views or a modern apartment near golf courses, our team is ready to guide you through the current market landscape.
Want to explore opportunities tailored to this low-rate environment?
Contact us today for a personalized property consultation.
For more information on buying property in Marbella and Costa del Sol, visit Nookhomes for expert guidance and listings that meet your criteria.
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