According to modeling by Deco/Dinheiro&Direitos, mortgage payments paid to the bank rose again in April in floating rate contracts, with an expected increase of 139 euros over a six-month period compared to the last revision.
Thus, a client with a 30-year loan of 150 thousand euros, indexed to a six-month Euribor – the most used in home loan agreements in Portugal – and with a “spread” (bank’s profit margin) of 1%, started paying from this month 739, 40 euros, which means an increase of 139.2 euros compared to the last revision in October.
In the case of a loan under the same conditions (amount and maturity), but indexed to a three-month Euribor, the client now pays 708.45 euros, which is 70.8 euros more than in January.
These values were calculated taking into account the average values of Euribor in March of 3.267% for six months and 2.911% for three months.
With regard to 12-month Euribor-indexed loans, the mortgage payment for a loan with the above conditions will be €773.19 this month, which is €306.89 more than what you have been paying since April 2022.
In this case, the value is calculated taking into account the average value of the 12-month Euribor in March, which was 3.647%.
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, meaning an increase in the amount customers pay for loans, primarily home loans, which have left many families stranded.
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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