The installment paid to the bank by customers with three- and six-month Euribor-indexed mortgage loans will decline in August, and more significantly than in previous revisions, according to Deco / Money & Rights.
According to the simulation, a customer with a loan of 150 thousand euros in 30 years, indexed to six-month Euribor with a spread of 1%, paid from August 458 € 92, which means € 7.45 less than the last review of the installment in February.
In the case of a loan under the same conditions, but indexed to Euribor at three months, the customer will pay 457.72 euros, in this case 3.68 euros less than the one paid in May.
Euribor rates are the main index in Portugal in bank contracts that finance home purchases. The six month Euribor is the most used, followed by the three month rate.
Interest rates remain negative and even increasing. In July, the six-month Euribor rate averaged -0.347%, a new historical low, and the three-month rate average of -0.365%.
Euribor interest rates have been accentuating the negative value following the European Central Bank (ECB) indication that the principal rates will remain at current levels and may even fall, which benefits customers with variable index credit agreements. (like Euribor).
Already banks have been anticipating a negative impact on their business.
This week, when the main banks operating in Portugal are showing results, the prolongation of low interest rates dominated the press conferences, with the presidents of Caixa Geral de Depósitos, BCP, Santander Totta and BPI anticipating pressures on banks. net interest income (difference between interest that banks charge on credit and interest on deposit).
BPI President Pablo Forero even admitted that banks may have to adjust their business objectives, particularly profitability, in this context.