Official mortgage market reference rates

Official interest rates are usually used to index variable- or tracker-rate transactions.

The official reference rates are those established in Article 27 of Ministerial Order EHA/2899/2011 (in Spanisnh)Abre en ventana nueva of 28 October 2011 and are stated in rule fourteen and Annex 8 of Banco de España Circular 5/2012 (in Spanish)Abre en ventana nueva. The official benchmark rates are:

  • 12-month  Euro InterBank Offered Rate (EURIBOR), as amended by Circular 5/2017 (in Spanish)Abre en ventana nueva. This is Spain’s most widely used benchmark rate for tracker (variable-rate) mortgages. The benchmark rate is the monthly arithmetic mean of the daily EURIBOR interbank rates referred to in the Annex of Commission Implementing Regulation (EU) 2016/1368 of 11 August 2016, establishing a list of critical benchmarks used in financial markets.
  • 12-month MIBOR. The Madrid Interbank Offered Rate (MIBOR) was the official rate for mortgages taken out prior to 1 January 2000. It is calculated as the simple mean of the daily interest rates offered on 12-month interbank deposits over a one-month period.
  • Internal rate of return of the secondary government bond market. Calculated based on the returns obtained in the secondary market from transactions involving government bonds with average residual maturities of two to six years.
    • Five-year Interest Rate Swap rate. Calculated as the monthly simple average of the Mid Spot daily interest rates of the annual rate for interest swaps. This rate is used for euro-denominated transactions with five-year maturities and is calculated by the International Swaps and Derivatives Association (ISDA).
    • Rates for mortgage loans terms of more than three years  offered by Spanish credit institutions. This rate is often used to reset variable-rate mortgage loans. It is the simple average of the weighted average interest rates of mortgage loans with terms of three years or more, for the purchase of unsubsidised housing, granted or renewed by banks and savings banks in the month to which the reference rate refers. Equivalent annual rates are used to calculate the average.
      • Euro area lenders’ average 1-to-5-year mortgage rate for the purchase of unsubsidised housing. This is the average, weighted by volume of transactions, of interest rates applied to new lending in euros to euro area residents for housing purchases with a one-to-five-year fixed-interest-rate period.

        The first four of these rates are published in the Official State Gazette (BOE) at the start of each month. The last two rates are published in the second half of each month


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