According to modeling by Deco/Dinheiro&Direitos, the mortgage payment paid to the bank rose again in March in floating rate contracts, with an expected increase of 185 euros over a six-month period compared to the last revision.
So a client with a 30-year loan of €150,000 indexed to the six-month Euribor rate – most commonly used in home loan contracts in Portugal – and with a “spread” (bank profit margin) of 1%, he would pay 727. 85 euros as of March, which means an increase of 185.57 euros compared to the last review in September.
In the case of a loan under the same conditions (amount and maturity), but indexed to a three-month Euribor, the client now pays 685.34 euros, which is 67 euros more than in December.
These values have been calculated taking into account the average Euribor in February of 3.135% for six months and 2.640% for three months.
As for loans indexed to the 12-month Euribor, the mortgage payment – for a loan under the above conditions – will be 763.06 euros from next month, which is 303.33 euros more than from March 2022.
In this case, the value was calculated taking into account the average value of the 12-month Euribor in February, which was 3.534%.
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 already raised key rates five times, which means an increase in the amount that customers pay for loans, primarily for home loans, which has left many families in a difficult situation.
In view of the deteriorating cost of home loans, the Government approved a regulation (valid until the end of 2023) that sets out the conditions under which banks must offer customers loan rescheduling to avoid default situations. According to information from major banks, thousands of customers are already in the process of reviewing their loans.
Author: Portuguese
Source: CM Jornal
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