What is Euribor? The rate behind many euro loans and mortgages
By SendPay Business · · 2 min read
Euribor, the Euro Interbank Offered Rate, is a benchmark showing the average rate at which a panel of European banks can borrow euros from each other without collateral. It is published every working day for several lengths of time, such as one, three, six and twelve months.
Who runs it
Euribor is run by the European Money Markets Institute. After the LIBOR scandal, its method was reformed so that it relies as much as possible on real transactions rather than banks' estimates.
Euribor and €STR
The euro short-term rate, €STR, is a separate overnight benchmark published by the European Central Bank since 2019, based on actual deals. Unlike sterling, where SONIA replaced LIBOR, Euribor is still published and widely used alongside €STR.
Why borrowers care
- Many variable-rate mortgages in countries such as Spain and Portugal are priced as Euribor plus a margin.
- When Euribor rises, those monthly repayments usually go up at the next review.
- Business loans and some savings products are also linked to it.
Where SendPay fits
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.