Portugal early mortgage repayment explained

Borrowers can make partial early repayments of their mortgage, which allows for either lower monthly instalments or a shorter loan term. Reducing monthly payments is an automatic process based on lower capital, while shortening the loan term requires a renegotiation and agreement with the bank. Early repayments must be made on a scheduled monthly instalment date, and the bank must provide a written explanation of the financial impact after the request is made. Notice periods are seven working days for partial repayments and 10 working days for full loan settlement. Banks may charge a maximum commission of 0.5% for variable-rate mortgages and 2% for fixed-rate ones.