The interest paid to the bank for the house loan has been rising for six consecutive months and has already reached the highest value in six and a half years. An evolution motivated by the continuous increase in Euribor rates, to which most mortgage loan contracts in Portugal are indexed. , to 1.144%which represents the highest value since March 2016 (1.163%). Interest rates increased by 13.3 percentage points compared to August, in what was already the sixth consecutive month of increases. Considering loans for house purchase – the most relevant financing destination in the whole of housing credit – the rise was also 13 .3 percentage points to 1.160%. In the most recent credit agreements, signed in the last three months, the aggravation was more expressivewith interest rates rising 25.2 percentage points, in September, to 1.775%.
Installment rises by 26 euros in new contracts
With the increase in interest, the installment payable to the bank rose again last month. Taking into account all the contracts, the average value of the increased by 4 euros compared to August, to 272 euros. Of this amount, 58 euros (21%) correspond to interest payments and 214 euros (79%) to amortized capital. 26 euros more compared to August, for an average of 471 euros per month.Also read: Rise of Euribor: is it the right time to amortize home loans?
Average debt capital grows again
The average debt capital for all contracts grew 339 euros compared to the previous month, standing at 61,089 euros. This value has been increasing since June 2020, that is, there are 28 consecutive months.For contracts concluded in the last three months, the average amount owed was 130,872 euros, 2,780 euros more than in August. Also read: Recent housing loan: Can I improve conditions?
Euribor rates hit new highs
The continued increase in interest rates on home loans is directly related to the evolution of Euribor rates which, together with the spread, determine the “price” to be paid to the bank for the home loana.After several years in negative territory, these reference rates started to trajectory of increases earlier this yeargiven the signs that the European Central Bank (ECB) would have to reverse its expansionary monetary policy and raise interest rates, to control the rapid growth of prices in the region. , having now reached new highs. The six-month Euribor, the most used in Portugal in mortgage loan contracts, is already at 2.083%, a new high since February 2009.The three-month Euribor, which has been negative for more than seven years, has already breached the 1.5% barrier, reaching its highest level since November 2011. Finally, the 12-month Euribor, the one with the most weight in new credit agreements in Portugal, is already in 2.733%, a new high since January 2009.Also read: Housing credit: Families can have monthly “relief” from the IRS in 2023
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