According to simulations by Deco/Dinheiro&Direitos, mortgage payments will increase significantly this month in Euribor-indexed contracts for three, six and 12 months compared to the last changes.
Thus, a client with a 30-year loan of 150 thousand euros, indexed to a six-month Euribor and with a “spread” (bank profit margin) of 1%, will now pay 678.60 euros, which means an increase of 184.90 euros compared to with the last review in July, slightly lower than the increase recorded in contracts that were renewed in December.
In the case of a loan under the same conditions (amount and maturity), but indexed to a three-month Euribor, the client now pays 637.60 euros plus 82.35 euros.
These values have been calculated taking into account the December Euribor averages of 2.5601% for six months and 2.064% for three months.
As for the 12-month Euribor-indexed loan, the mortgage payment – for a loan with the above conditions – will be 717.68 euros as of January of this month, which is 269.03 euros more than what you have been paying since the same month . 2022.
In this case, the value was calculated taking into account the average value of the 12-month Euribor in December, which was 3.018%.
Unlike what happens in the scenario with contracts indexed to three-month Euribor, whose monthly payment in January increases slightly less than the increase seen in contracts that are renewed in December, in contracts indexed to 12 months, the increase in monthly payment ” invoice” exceeds the amount of contracts reviewed last month (251.69 euros).
Changes in Euribor interest rates are closely linked to increases or decreases in ECB interest rates.
After several years of negative territory, the Euribor began to rise more significantly since February 4, after the European Central Bank (ECB) admitted that it could raise key interest rates due to rising inflation in the eurozone.
Since then, the ECB has raised the key rate four times, the first of which was in July, the first increase in 11 years.
The six-month Euribor rate most commonly used in Portugal for home loans has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).
The three-month Euribor on July 14 entered positive territory for the first time since April 2015.
The 12-month Euribor turned negative on February 5, 2016, having been positive since April 21.
Euribor rates are the main indicator in Portugal in banking contracts that finance the purchase of a house. The most commonly used is the six-month Euribor rate, followed by the three-month rate.
Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.
Faced with the deteriorating cost of home loans, the government approved a regulation outlining the conditions under which banks must offer loan renegotiations to customers to avoid situations of default. The measures are valid from November 26, 2022 until the end of 2023.
As part of this set of measures, the collection of commissions from customers wishing to partially or fully repay the loan is also suspended.