Mortgage rates highest since 2011

 In Mortgage lending, News

Families whose mortgage interest rates will be revised in May will see their monthly payments go up by between 1% and 7%.

In mortgages tied to Euribor at 6 and 12 months, it will be the greatest increase in interest rate payments since the 2011 crisis.
War, inflation, the European Central Bank (ECB) interest rate rises will all effect Portuguese wallets. Costs are rising, from supermarket products, electricity bills, fuel, products and services and now the cost of mortgages are all contributing to making life more expensive.
The cost of servicing a mortgage will now go up between 1% and 7% according to the index used in the contract, with Euribor index linked loans being hit the hardest.
Therefore, a loan of €150,000 over 30 years with a spread of 1% linked to Euribor at six months (the most common index) will see their interest rates going up 3% in May.
That increase, the highest since August 2011, will add an extra €14 on the cost of a mortgage instalment, meaning €450 for the next six months (until the next review).