This may be a good time for clients to negotiate and try to make the terms of their loan taken out before the pandemic more advantageous.
Gtres
Gtres

Most house buyers with a mortgage tend to take out home loans to be paid back over 25-30 years. This is a very long term and it represents a lot of money in interest. Therefore, periodically reviewing whether there is any possibility of improving the conditions initially put in place when the home loan was taken out is fully justified and recommended.

Changing your mortgage conditions or even taking out a mortgage during the coronavirus crisis may seem far from ideal, but now might actually be the time to take advantage. Each case has its own particularity, but it is certain that the current moment of crisis caused by the COVID-19 pandemic may be very opportune to seek to improve the conditions of home loans in Portugal. The scenario is very favourable as far as interest rates are concerned, since they are very competitive and banks are trying to adjust their offers better according to what happened in the past. 

However, the mortgage experts at idealista/créditohabitação point out that it is important to consider a number of issues when thinking about changing your mortgage, depending on the type of financing you have taken out:

  • Variable rate mortgage: Euribor is at historically low levels, but that applies to all banks. So what you have to check is the spread, because that's what banks can change.
  • Fixed rate mortgage: here the comparison is made on the rate applied, but it is very important to know the possible penalty of early cancellation, applicable to this type of loans.

In all cases, the quickest solution is to negotiate with the bank itself to improve conditions: in general, they tend to be receptive, even if this does not guarantee that they will present the best prices. Comparing is always the best way to decide.

Another option is to change the type of interest rate, from fixed to variable or vice versa: the fixed rate suits those seeking peace of mind, taking advantage of the very low levels of rates on current housing loans; the variable rate suits those who want to reduce the monthly instalment in the short term and know that they can cancel the loan in advance, or assume the instalment increase if it happens due to fluctuations in Euribor. 

Compare the best mortgage offers with us at idealista/créditohabitação and at the same time, solve any mortgage doubts you may have with us for free.