Families with home loans indexed to the 12-month Euribor will see the largest increases in their October monthly payments, with a representative example of a €250,000 loan projecting an increase of €148.
This update is from Bica
Your quick shot of what's changing in Portugal and affecting your status, your home, your money, and whatever might disrupt your day. Short and clear updates, gathered from Portuguese sources.
It's free, with no signup and no app to download.
Read today’s briefing
Borrowers with home loans scheduled for revision in November will see their monthly payments increase, as the average Euribor rates for October remain higher than those from three, six, or 12 months ago. However, the pace of these increases is slowing, and data shows a slight monthly decline in the 3-month and 12-month Euribor rates compared to September. For a sample 200,000-euro loan over 30 years with a 1% spread, monthly payments are projected to rise by approximately 21 euros for 3-month indices, 54 euros for 6-month indices, and 109 euros for 12-month indices.
The 12-month Euribor average rose in September, directly impacting mortgage contracts being revised in October. Both existing variable-rate loans and new variable-rate borrowings will see increased costs as a result.
The average monthly installment for primary home mortgages reached 450 euros in September, the highest value since the data series began in 2018. This represents a 9% year-on-year increase, according to the Bank of Portugal.