Portuguese families continue to restructure home loans to cope with high monthly payments caused by rising interest rates. In February of this year alone, the amount agreed with the banks amounted to 642 million euros, 47 million euros, or more than 8%, more than in the same month in 2023, according to data published this Friday by the Bank of Portugal (BdP).
The February figure still represents a decline from the first month of this year, when mortgage holders negotiated a global amount of 757 million euros with banks. Overall, the total amount of restructuring in 2023 was €8.8 billion.
It is important to note that following the significant rate hikes resulting from increases dictated by the European Central Bank (ECB), there has been a slowdown in interest costs that has not yet been reflected in the monthly average. installment plan
According to the Bank of Portugal, since December 2021, the average installment on all home loans – at that time 278 euros – continued to rise until February of this year, a month in which it remained at 426 euros compared to January.
The decline in eurozone inflation to close to 2% (it slowed to 2.4% in March) is consistent with the ECB’s intention to begin cutting interest rates, which could happen as early as June. This will then lead to a reduction in the amount of loan premium paid to banks.
Author: João Maltes
Source: CM Jornal
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