What is Euribor?
A. Euribor is the reference rate that European banks use to set the rate on mortgages (where British banks use the Bank of England Base Rate). Euribor can be measured over various periods of time; 1 month, 6 months, 12 months etc. Traditionally, Spanish mortgage lenders have used the 12-month Euribor, which means that the mortgage rate is correspondingly fixed for 12 months (like having a 1 year fixed rate mortgage in the UK). Nowadays some of the banks use the 1-month Euribor and others use the 6-month Euribor. Always check this so that you know how often the rate can change. Euribor stands for European Inter-Bank Offered Rate.
