In short
- Euribor is the rate at which euro-area banks lend to each other.
- Most mortgages in Latvia are linked to 6-month Euribor.
- Your rate is the bank margin plus Euribor, and the Euribor part is reviewed every six months.
- If Euribor rises by 0.5%, a €100,000 loan over 30 years costs about €29 more a month.
What Euribor is
Euribor (Euro Interbank Offered Rate) shows the interest rate at which euro-area banks lend to each other without collateral. The European Money Markets Institute (EMMI) calculates it every working day from the banks on its panel and publishes it at around 11:00 Central European Time.
Euribor has five tenors: one week, and 1, 3, 6 and 12 months. It moves with European Central Bank decisions and with what markets expect rates to do next. Neither Latvijas Banka nor your bank sets Euribor.
EMMI uses what it calls a hybrid methodology: the rate is based on banks' real money-market transactions, and other market data is used only when there are not enough of them. That is why Euribor reacts quickly to changes in the market.
Which Euribor Latvian mortgages use
According to Latvijas Banka data quoted by LSM in 2025, more than half of all mortgages in Latvia are linked to 6-month Euribor, and about a quarter to 3-month Euribor. Only around 3% of loans had a fixed rate.
If your loan is linked to 6-month Euribor, the bank usually resets that part of the rate every six months on a date set in your contract. That is when your monthly payment changes. You will find the exact date in your loan contract or online bank.
How Euribor changes your payment
Your total rate is the bank margin plus Euribor. If the margin is 2% and Euribor is 2%, you pay 4% a year. The margin stays fixed in the contract; the Euribor part moves.
An example with a €100,000 loan over 30 years:
| Total rate | Monthly payment | Difference vs 4% |
|---|---|---|
| 3.5% | €449 | −€28 |
| 4.0% | €477 | €0 |
| 4.5% | €507 | +€29 |
| 5.0% | €537 | +€59 |
| 6.0% | €600 | +€122 |
When Euribor goes negative
Euribor has been below zero before. Newer contracts usually treat a negative Euribor as zero, so your rate cannot fall below the margin. Older contracts may not have this clause. Check yours.
How to prepare for Euribor swings
- Budget with a rate 1–2% higher than today's
- Keep a reserve for at least a few months of payments
- Find out your rate reset date
- If the swings worry you, compare with a fixed rate
- Negotiate the margin, the only part of the rate you can influence
Common questions
Where can I see today's Euribor?
EMMI publishes the official values on its website. Many banks also show them on their pages.
Why didn't my payment change when Euribor did?
Your rate only changes on the reset date, for example every six months. Until then the previous Euribor value applies.
Can I switch from 6-month to 3-month Euribor?
That is a contract change you have to agree with the bank. More frequent resets mean your payment follows the market faster, both up and down.
Does Latvijas Banka set Euribor?
No. EMMI calculates Euribor for the whole euro area. It moves with European Central Bank decisions and market expectations.
Sources
- Euribor · European Money Markets Institute (EMMI)
- Euribor krītas: vai hipotekārajiem kredītiem gaidāma nulles likme · LSM, 2025
This article is for information only and is not legal, financial or tax advice. It may contain mistakes or be out of date, so check it against official sources or with a specialist before you decide. m²cena accepts no liability for any loss or damage arising from the use of the information in this article.