Mortgage repayments up in December
Mortgages will go up between 10% and 55% from December.
Monthly repayments on mortgages will rise again from December by between 10% and 55%.
They will rise at a particularly challenging time for families which are dealing with the cost of living crisis because of galloping inflation which has exceeded 10%.
To deal with the effect of rising interest rates the government has announced measures to speed up the renegotiation of mortgages with banks to avoid default and eviction.
Euribor rates, which are calculated on loans that the banks make between themselves and are used as indexes to calculate mortgage repayments on mortgage contracts, have been going up since the start of the year, with the market expecting the central bank (ECB) raising rates to put the brakes on spiralling prices.
Last week, the Bank of Portugal expected that average mortgage repayments would be €90 more by the end of 2023 assuming that the Euribor rate would reach 3% by the end of that period. The repayments on a home loan of €150,000 with a spread of 1% would be as follows:
Those with Euribor set at 12 months will pay €700, almost €251 more (+56%) in relation to repayments paid in 2021.
Repayments at 6 months Euribor will be €657, an increase of €164 (+33%) in relation to the repayments paid since May.
With Euribor set at three months, the repayments over the next three months from December will rise to around €617, up €62 (+11%) in relation to the repayments paid since August.