The 12-month Euribor closed at 3.109% on 4 September 2026, its highest level of the year, and the provisional September average already stands at 3.069%. Exactly a year ago, in September 2025, the monthly average was 2.172%. That is almost 0.9 points higher in twelve months. In August we wrote that Euribor had reached its 2026 high at 2.95%; three weeks later it has broken through the psychological 3% barrier. Here is what it means, in numbers, for anyone with a mortgage, anyone planning to buy, and anyone thinking of selling in Alicante or Benidorm.
What has happened to Euribor in 2026
The climb has been steady since spring. The monthly average went from 2.245% in January to 2.565% in March, 2.798% in June, 2.855% in July and 2.952% in August (the highest monthly figure of the year so far), and is now close to 3.07% in September. Three factors explain it:
- The ECB. Markets price in a roughly 96% probability of a deposit-rate hike to 2.50% at the meeting on 10 September. Euribor always moves ahead of what it expects the central bank to do.
- Inflation. Eurozone harmonised inflation rebounded to 3.3% in August, from 2.9% in July.
- Oil. Brent is trading near $90 a barrel on Iran sanctions and geopolitical tension, which feeds through to prices and therefore to rates.
Analysts agree the key date is the 10th: if the ECB confirms the hike, Euribor could settle in the 3.05%–3.15% band; if it pauses, a correction towards 2.85%–2.90% is possible. Either way, 2026 ends with Euribor far above its 2025 level.
How much your repayment goes up: real examples
If you have a variable-rate mortgage with an annual review this month, your bank will compare September 2025 Euribor (2.172%) with September 2026 (3.069% provisional). With a 1% margin and 25 years left, these are the approximate increases:
| Outstanding capital | 2025 payment | 2026 payment | Monthly increase | Yearly increase |
|---|---|---|---|---|
| €120,000 | €580 | €638 | +€58 | +€698 |
| €175,000 | €846 | €930 | +€85 | +€1,017 |
| €250,000 | €1,208 | €1,329 | +€121 | +€1,453 |
That is an increase of around 10% of the repayment. It matches the example published by Spanish mortgage portals: a €167,000 loan over 25 years at Euribor + 0.75% goes from €780 to €854 a month (+€74). If your review is six-monthly the blow is spread out: roughly €47 more per month at the first review on €175,000.
If you are buying in Alicante: fixed, variable or mixed
With Euribor at 3% the advantage of a fixed rate is obvious again. For a €250,000 purchase financed at 80% (€200,000 over 30 years), a fixed mortgage at 2.9% costs about €832 a month; a variable at Euribor + 0.9% starts today at about €951, and rises if Euribor keeps climbing. It is no coincidence that more than 60% of new Spanish mortgages are now signed at a fixed rate.
The other effect is buying power: with a maximum payment of €900 a month over 25 years, a 3.17% rate finances about €186,000, whereas at 4.07% the figure drops to about €169,000. Every point of Euribor cuts roughly €17,000 from the budget. That is why many buyers are closing now, before the ECB meeting, and why you should have the bank's binding offer before making a firm offer on a property. If you are buying from abroad, also read our guide to buying property in Spain and the purchase costs in the Valencian Community (9% transfer tax since June 2026).
If you are selling: why high Euribor has not cooled prices (yet)
Logic says dearer mortgages mean lower prices. In Alicante that is not happening: according to idealista, housing in Alicante city hit an all-time high of €2,721/m² in August 2026 (+6.8% year on year), the province stands at €2,759/m² (+7.1%) and Benidorm at €3,807/m² (+12.6%). The reason is that a very large share of Costa Blanca demand buys without a mortgage (foreign buyers and Spanish buyers selling another home) and the stock for sale remains scarce.
What does change is the type of buyer: someone who needs to finance 80% of a €200,000–300,000 home has less room and negotiates harder. In practice: if you are selling a mid-priced flat in Alicante, San Vicente, Mutxamel or Villajoyosa, the asking price has to be exact, because the mortgaged buyer can no longer stretch. If you are selling on the seafront or in Benidorm, where the international buyer sets the tone, Euribor barely matters. In both cases the window is good: prices at record highs and demand still active. Start with a free online valuation and, if you still have a mortgage, read how to sell a property with an outstanding mortgage.
Three practical decisions for this week
- If you have a variable rate and many years left, ask your bank (and two others) for a switch to a fixed or mixed rate. Since Law 5/2019 the fee for moving from variable to fixed is tightly capped and changing bank is free or almost free.
- If you are buying, do not sign a deposit contract without the FEIN (binding offer) in hand. Euribor at 3% changes the bank's risk assessment and can reduce the approved amount.
- If you are selling, price against completed sales from the last quarter, not against asking prices. Correctly valued homes in Alicante still sell within weeks; those listed 10% above the market sit unsold.
Related reading: our August analysis of Euribor, the selling-costs calculator and the guide on appraisal versus valuation.
Frequently asked questions
What is Euribor today, September 2026?
The 12-month Euribor closed at 3.109% on 4 September 2026, the 2026 high. The provisional September monthly average is 3.069%, against 2.952% in August and 2.172% in September 2025.
How much does my mortgage rise with Euribor at 3%?
At an annual review, with €175,000 outstanding over 25 years and a 1% margin, the payment rises by about €85 a month (over €1,000 a year). With €250,000 outstanding, about €121 a month. That is close to a 10% increase.
Will Euribor keep rising?
It depends on the ECB. Markets give a 96% probability to a rate hike on 10 September 2026; if confirmed, Euribor could trade between 3.05% and 3.15%. If the ECB pauses, a correction towards 2.85%–2.90% is possible.
Is it a bad time to sell with Euribor this high?
Not in Alicante and Benidorm: prices hit record highs in August 2026 (€2,721 and €3,807/m² according to idealista) because much of the demand buys without a mortgage. What high Euribor does demand is an exact asking price, because mortgaged buyers negotiate harder.