Euribor changes in Portugal - what this means for mortgage holders

Increases recorded for mortgages with 3-6 month Euribor interest rates

Euribor changes in Portugal / Blake Wheeler on Unsplash
Euribor changes in Portugal / Blake Wheeler on Unsplash
20 February 2020, Redaction

2020 started with good news for those who applied for a mortgage, but this month, the scenario looks like it is changing, but only slightly for the time being. The instalment paid by mortgage customers with home loans with 3- or 6-month Euribor rates (the most common in Portugal) will rise slightly from the last revision.

A client with a loan of 100,000 euros for 30 years, with 3-month Euribor interest rates, with a spread (bank profit margin) of 1%, will pay 304 euros from this month of February, according to the Portuguese economy newspaper, ECO. In the case of having a home loan under the same conditions, but indexed to 6-month Euribor rates, the client will pay 306.71 euros. Seeing this in the big picture, this is an increase of 98 cents in the first case, and another 76 cents in the second.

There are also changes to loans associated with 12-month Euribor interest rates. Clients will see the loan instalments fall by 1.9%, the equivalent of 6.14 euros for 310.20 euros.

Euribor rates are the main index in Portugal for bank contracts that finance the purchase of a house, with the 6-month rate being the most used, followed by the 3-month rate.

  • Find a mortgage in Portugal with idealista's free mortgage comparison site in Portugal, where you can consult a specialised mortgage calculator and see loan offers from all the different Portuguese banks. 
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