Home payments fell in February after two years of growth

According to modeling by Deco/Dinheiro&Direitos, housing premiums paid to the bank will fall slightly in February for contracts indexed to the three- and six-month Euribor, after almost two years of growth.

This is the first reduction in these contributions in almost two years and follows a small reduction in Euribor rates in January, which left them below the Euribor average in the latest contract review.

However, while paying less to the bank for those with mortgages is good news, the reduction will be small given the sharp rise in installments since 2022 which has left families stranded, forcing many to restructure their loans to ease height. .

A client with a loan of 150 thousand euros for a period of 30 years, indexed to the six-month Euribor and with a “spread” (the bank’s rate of return) of 1%, will pay 795.36 euros starting in February, which means 4.56 euros less than what you have paid since August.

For loans indexed to the three-month Euribor, housing fees – under the same conditions – are reduced to 798.37 euros, a reduction of 3.93 euros per month compared to the last review in November.

For contracts indexed to the 12-month Euribor rate revised in February, the premium continues to increase, as the average 12-month Euribor rate was still higher in that month than in January 2023.

A customer with a loan of €150,000 for 30 years, indexed to 12-month Euribor and with a “spread” (the bank’s rate of return) of 1%, would pay €769.77 starting in February, plus €24.20 over what you have been paying since February 2023.

These simulations were calculated using January Euribor averages of 3.892% for six months, 3.925% for three months and 3.609% for 12 months.

The evolution of Euribor interest rates is closely linked to increases or decreases in European Central Bank (ECB) interest rates.

The Euribor rate fell sharply in December after the ECB decided to leave rates unchanged in October and December and then expected them to be cut in the short term. The decline was less significant in January as the market began to view the timing of the ECB’s first rate cut as highly uncertain.

The average Euribor rate considered for the purpose of checking a variable rate loan agreement is equal to the rate for the month preceding the signing of the loan agreement.