Residential Mortgage Payments Nearly Stable in August

1 August 2018

The month of August, which begins today, brings little news for people paying down their mortgages to Portugal’s banks. Calculations made by Deco for Lusa show that clients with floating rate loans which are indexed to Euribor will continue to pay the same amount as before per month. Euribor is the principal main index used to determine mortgage payments in Portugal.

A mortgage-holder with a 30-year 150,000-euro loan, indexed to the 6-month Euribor with a 1% spread, will pay 464.15 euros this month, the same value as in July and only 34 cents more than the last payment revision in February, according to a simulation.

In the case of a loan under the same conditions, but indexed to the 3-month Euribor, the mortgage-holder will pay 460.66 euros, up by 47 cents since the last revision in May.

The 6-month Euribor is the most commonly used benchmark, followed by the 3-month rate. In June, the news agency noted, the average 6-month Euribor rate stood at -0.269% (the same as in May) and the 3-month rate was -0.321% (in May it was -0.322 %). Since the Euribor rates have varied little, the cost of variable-rate loans has remained practically unchanged.

Original Story: Idealista

Photo: JLL

Translation: Richard Turner