Euribor home loan interest rates fall
Interest rates on home loans in Portugal have fallen for mortgages indexed to six and 12 months on Euribor.
However, those indexed on Euribor three months will see their monthly payments rise slightly.
In a mortgage scenario on a loan of €100,000 over 30 years and with a 1% spread, families with mortgages linked to Euribor 12 months will be better off under the review, paying almost 1% less on their home loan per month with a payment fixed at €313.08 over 12 months.
In other words, these families will receive a real reduction of €2.76 like-for-like on the same period last year.
Likewise, families whose mortgages are pegged at the Euribor six-month rate will also enjoy lower lending rates. With the same scenario, the loan amount will fall 0.27% or 82 cents with the new monthly payment of €308.39 compared to €309.21.
Those who have their mortgages fixed at the Euribor three-month rate will see their monthly payments rise, albeit slightly.
The interest on these three-month rate loans will rise 0.06% or 18 cents from €306.75 to €306.93 per month.
These changes are taking place at a time when analysts increasingly talk about interest rates rising by 0.50% in the Eurozone by 2020.
Rates are expected to remain at 0.00% by the end of the quarter according to Trading Economics global macro models and analyst expectations.