PSD comes up with proposals to mitigate the impact of mortgage rates

The Social Democratic leader, Luís Montenegro, expected on Tuesday that the PSD will come up with proposals to mitigate the impact of the rise in interest rates on home loans.

“We will also have to make a contribution in this area,” said the PSD chairman, indicating as options the suspension of payments, deduction of the amount of interest in the IRS or some tax benefits related to home loans.

Luís Montenegro defended that “the state has a responsibility not to leave young couples with an additional difficulty in their lives, due to the now also rapid rise in interest rates”.

The PSD president spoke to journalists in Tabuaço, in the Viseu district, on the second day of the “Sentir Portugal” program, after a lunch with businessmen in the tourism sector.

“We are studying responses to the housing market that should be integrated into global policies that, on the one hand, promote rents and also promote the ability of families to pay today the increases that interest rate hikes bring for credit,” he added.

In the opinion of Luís Montenegro, the country needs “a government response” to the issue of the rate hikes, so “in the context of the next state budget, this will be one of the most pressing issues”.

“The prospect of adding to this process of runaway inflation the rise in interest rates means that, in addition to essential commodities such as food, energy, gas, fuel, the prices of providing home loans to those who have it and, normally they are young couples, I think it will grow a lot in the coming months and this will make life even more difficult for those on low pay and who have much higher cost of living these days,” he insisted.

The Prime Minister, António Costa, said in an interview with TVI/CNN Portugal on Monday that it is “likely” there will be support to help families with mortgages in the face of rising interest rates.

However, Costa felt it was necessary to wait to see if “the parties find solutions,” which could lead to receiverships, loan renegotiations, or even re-allow the deductions in the IRS.