In 2024 I opened the folder of mortgage quotes I had brought home from four different banks. Same amount, same term, same profile. The spread ranged from 0.65 to 1.40. That is no small thing: on €200,000 over 25 years, it works out to roughly €28 a month. Eight thousand four hundred euros over the life of the schedule. And yet the banks, when I pointed it out, all replied with the same line: "the spread depends on the profile". True. But only in part.
Here is what I figured out reading SECCIs one by one and talking to two ex-branch managers. The spread is not a number set by the market: it is the bank's commercial margin on your mortgage, and it is up for negotiation.
What the Spread Really Is (in Two Lines)
When you sign a variable-rate mortgage, the TAN you pay is made up of two pieces: the Euribor (the reference index, which the bank takes from the interbank market) plus the spread. The spread is the bank's margin, and it is the only line item that can be negotiated. Nobody at the branch decides the Euribor: the market does.
For fixed-rate mortgages the logic is similar, but the reference index is the IRS (Interest Rate Swap) for the term of the mortgage. There too there is a spread on top. There too it is up for negotiation.
Where to Read the Spread (and Why the SECCI Is the Real Document)
The SECCI — Standard European Consumer Credit Information — is the standardised information sheet that the bank must hand you BEFORE you sign. For home mortgages there is the equivalent PIES (European Standardised Information Sheet), introduced by directive 2014/17/EU and transposed in Italy with Legislative Decree 72/2016.
In the PIES you will find four items that need to be examined under a magnifying glass:
- TAN: nominal annual rate, the sum of Euribor + spread (variable) or IRS + spread (fixed).
- TAEG / ISC: total effective annual rate. It includes everything: spread, processing fees, appraisal, payment-collection fees, compulsory insurance. It is the number that tells you what you really pay.
- Explicit spread: you find it in the "borrowing rate" or "cost components" section. Sometimes it is written as "0.80% above 3-month Euribor". Sometimes it is hidden inside a formula like "TAN = 3M Euribor + 0.80%".
- Floor clause: the clause that pegs the Euribor at zero (or sometimes at a positive value — watch out) if it goes into negative territory. If you find it set at 1%, that means even with Euribor at -0.5% you will pay TAN = spread + 1%. Almost all Italian banks today have a floor at zero.
Quick anecdote: the first bank I went to in 2024 had only shown me the TAEG. "Three point four zero, you see?". I insisted on seeing the spread separately. It was 1.35. In the same town, two kilometres further on, another bank offered me 0.75. The exact same profile. The difference was in the branch's commercial policy, not in my creditworthiness.
Why Two Banks Give Different Spreads on the Same Profile
When the loan officer tells you "it depends on the profile", they are telling you a half-truth. Yes, there are objective factors that push the spread up or down. But part of it is pure commercial margin that can be negotiated.
The factors that actually move the spread:
| Factor | Typical impact on the spread | Why |
|---|---|---|
| LTV (loan to value) below 50% | −0.15 / −0.30 | More collateral for the bank, less risk |
| LTV above 80% | +0.20 / +0.40 | Higher default risk if home values fall |
| Current account at the same bank | −0.10 / −0.20 | Cross-selling, retention |
| Salary direct-deposit | −0.05 / −0.15 | Lower default risk, payment guaranteed |
| Fire/explosion insurance with the same bank | −0.05 / −0.10 | Extra revenue for the bank |
| Public-sector employee or permanent contract >5 years | −0.10 / −0.25 | Certified income stability |
| Under 36 with the Consap guarantee fund | −0.20 / −0.50 | Risk covered by the State up to 80% |
Adding these discounts up, someone with a good profile can secure reductions of as much as 0.80 points off the "shelf rate". But — and this is the point — these discounts have to be asked for, one by one. The bank does not apply them automatically.
How Much the Spread Really Affects the Instalment: the Numbers
Take a mortgage of €180,000 over 25 years, variable rate, 3-month Euribor at 2.165% (the April 2026 figure). Here is how everything changes as the spread varies.
| Spread | Resulting TAN | Monthly instalment | Difference vs spread 1.00 | Total cost over 25 years |
|---|---|---|---|---|
| 0.65 | 2.815% | €838 | −€27/month | €251,487 |
| 0.85 | 3.015% | €855 | −€10/month | €256,501 |
| 1.00 | 3.165% | €865 | 0 | €259,451 |
| 1.20 | 3.365% | €880 | +€15/month | €263,989 |
| 1.40 | 3.565% | €895 | +€30/month | €268,566 |
Between the best spread (0.65) and the worst (1.40) there are €17,000 over the life of the schedule. For those taking out mortgages above €250,000 the gap widens further: €50–60 a month, €18,000 over 25 years.
Is it worth two weeks of going through 4–5 banks? Yes.
The Three Most Common Mistakes When Sizing Up the Spread
The first: comparing the TAEG without looking at the spread. The TAEG includes a series of accessory costs (appraisal, processing, compulsory insurance, payment-collection fees). Two offers with the same TAEG can have very different spreads and therefore very different future instalments, because only the spread stays fixed for the entire life of the mortgage, while one-off costs run out.
The second: accepting the first spread without asking for reductions. Banks have manoeuvring room set out in their internal circulars. The branch officer can come down 0.10–0.20 points without authorisation; to come down further they ask the manager. Asking costs nothing.
The third: not reading the indexation clause. Some banks index the mortgage to the 3-month Euribor, others to the 6-month, others to the monthly average. It sounds like a detail but in rising-rate regimes the difference is real: the 6-month Euribor tends to sit 25–50 basis points above the 3-month.
How to Negotiate the Spread (so That It Actually Works)
Three things that worked for me, told the way I did them.
Get three written quotes and bring all three to the fourth bank. "Look what Intesa is offering, look what Unicredit is offering, look what BPER is offering. I'll give you priority if you beat these three. What can you do?" It works because the officer sees you mean business and have real options. Never show up without quotes: you'll come across as exactly the customer who'll take what they're given.
Negotiate the spread separately from the processing fees. Banks tend to shift your attention onto the one-off charges (which run out in the first year) so as not to touch the spread (which weighs on you for 25 years). Do the opposite: ask first for the discount on the spread, then look at the fees.
Salary direct-deposit + fire insurance: use them as bargaining chips. If the bank asks for them in exchange for a good spread, fine, but get the matching reduction in writing. If instead they tell you "the spread is what it is, the direct-deposit is mandatory anyway", switch banks.
Frequently Asked Questions
Can the spread change during the life of the mortgage?
No, once it is signed it stays the same until maturity or refinancing. It only changes if you formally move to another contract (refinancing, early repayment plus a new mortgage).
Is the spread on a fixed-rate mortgage the same as on a variable?
Typically it is similar or slightly lower on the fixed, but the underlying index is different (IRS instead of Euribor). The comparison should be made on the final TAN, not on the spread in isolation.
Is there a "market average" spread to use as a benchmark?
The Bank of Italy publishes quarterly statistics on average rates applied. At the start of 2026 the average spread on retail mortgages was around 1.10–1.20. Below 0.90 you're in "very good" territory; above 1.50 you're paying too much.
How much does the Consap guarantee fund weigh on the spread?
On first-home mortgages for under-36s, access to the Consap fund pulls the spread down by an average of 0.30–0.50 points, because the State covers up to 80% of the default risk. It is one of the most underrated advantages. If you qualify, it is almost always the single biggest lever.
Can you renegotiate the spread with the same bank after a few years?
In theory yes, in practice rarely. The real lever is refinancing: credibly threatening to move to another bank. If you have another institution ready to take your mortgage at a better spread, your current bank will often match it rather than lose you.
In Short
The spread is the part of the mortgage you have the most leverage on and that few people actually negotiate. On an average mortgage that is €15–20K of difference between a well-handled negotiation and one accepted on instinct. It is worth three afternoons of your life.
When you have the quotes in hand, before signing, try plugging the various spreads into a payment simulator with variable spread: watching the instalment shift as you change the spread by 0.1 at a time is the quickest way to grasp how much more — or less — you are paying compared to the market.
Related reading on mortgages
- Fixed or variable rate in 2026: which pays off with Euribor at 2.165% — if you still have to choose between a fixed and a variable instalment.
- French amortisation: how it really works, explained step by step — to truly understand the amortisation schedule attached to the contract.
- First-home mortgage 2026 for under-36s: tax benefits, the Consap fund, mistakes to avoid — if you are under 36 and buying your first home.