Last year, households were confronted with an increase in mortgage costs as a result of the accelerated increase in Euribor rates. And the year begins with new annoyances. Contracts updated this month can rise between 80 and 270 euros. The outlook is that the Euribor will continue to rise throughout 2023, but experts heard by Dinheiro Vivo believe it will be at a slower pace and could even stabilize from the first half.
After years in negative territory, in 2022 the Euribor reversed the trend that resulted from the decision by the European Central Bank (ECB) to raise key interest rates to respond to the rise in inflation in the Eurozone. A situation that, as explained by Natália Nunes, coordinator of Deco’s Financial Protection Department, ultimately “put great pressure on families who have mortgage loans with variable interest rates”. In Portugal, unlike many European countries, the vast majority of home purchase credit agreements (around 90%) have a variable rate, which means that the monthly fee varies depending on the Euribor update they are linked to. To support families struggling to secure the surge in loans, the government has proposed new rules to require banks to renegotiate contracts with higher effort rates.
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Source: DN
