Highly revised Euribor increases house payments

Highly revised Euribor increases house payments

The month of June started with the third phase of deflation in Portugal, but also with news relevant to the family economy, taking into account that, with the upward revision of Euribor, with increases between 0.8% and 2, 85%, for customers who have not adhered to the mortgage credit moratoriums, will increase the provision of the home, according to Idealista.

With regard to contracts with the shortest indexes, Euribor at 3 and 6 months, they are the most penalized, as happened in the review of interest rates on home loans last May. Rises resulting from an escalation of Euribor, which has been increasing since March, and which has worsened with the Covid-19 pandemic, due to doubts about the banks' ability to guarantee financing to families and companies in the current context of crisis. Even so, market expectations remain in the sense that interest rates remain below 0% at least until March 2025.

Calculations for all contracts revised in June

3-month Euribor – Considering the scenario of a loan in the amount of 100 thousand euros, for a term of 30 years, and with a spread of 1%, families will see the benefit increase by 2%, according to ECO writes, highlighting that this is the biggest increase since the review made in June 2011, at the height of the financial crisis in Portugal. There will be another 6.11 euros that will increase the value of the benefit to 309.3 euros during the next three months, that is, the highest bar in the last four years.

6 month Euribor – For households whose home loans are associated with this index, the increase in charges will be even greater. In view of the last revision made in December, the increase is 2.85%. Considering the same scenario, the value of the installment increases by 8.72 euros, to settle over the next six months at 315.11 euros. It will be necessary to go back until December 2015 to see a higher charge.

12 month Euribor – Families with these contracts – which represent a small share of total home loans in Portugal – also see monthly charges rise. But the increase will be the shortest among the revised variable rate loans this June. The increase will be 0.8%, with the value of the installment increasing by 2.41 euros, to settle at 317.93 euros over the next year, taking into account the simulated example. This is the highest performance since the review carried out four years ago, in June 2016, calculates the online medium.


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