By Andrea Hargraves 
If your contract is revised this month, be prepared to increase the premium payable to the bank. Check out simulations and find your case
Inflation continues to rise in Portugal and the Eurozone. In October, it exceeded 10% compared to the same month last year. To try to stem this seemingly endless rally for now, the European Central Bank (ECB) also in October raised interest rates again and set the key rate at 2%. Three months ago the same rate was 0%.
The story is not new. It has been repeating itself, month after month. Prices go up, interest rates go up. Markets are anticipating this trend.
Unsurprisingly, Euribor prices in October hit a new high compared to the previous month. Since the beginning of the year, the story has always been like this, and if the three-month Euribor rate has already increased by almost two percentage points, then the six-month Euribor, which is the most used in home loans in Portugal, has already increased by more than 2, 5 points percentage. The same 12-month average has increased by more than three percentage points since January.
The result is a huge rise in the premiums that Portuguese people with mortgages have to pay to the bank every month. This month will be no different and anyone who has their contract reviewed in November will feel the same way.
Increments can range from just under 30€ per month to as high as 230€. It all depends on the amount of capital outstanding and the index used. But there will surely be an upswing.
How much will mortgage lending increase in November
30-year loans with a difference of 1%
| 25 thousand euro loan | ||||
| Euripur 6 months | Euripur 12 months | |||
| Pay | 76.98 | Pay | 75.05 | |
| go and pay | 105.36 | go and pay | 114.07 | |
| a plus | 28.38 | a plus |
39.02 |
|
| A loan of 50 thousand euros | ||||
| Euripur 6 months | Euripur 12 months | |||
| Pay | 153.78 | Pay | 150.1 | |
| go and pay | 210.72 | go and pay | 228.14 | |
| a plus | 56.94 | a plus | 78.04 | |
| 75 thousand euro loan | ||||
| Euripur 6 months | Euripur 12 months | |||
| Pay | 230.67 | Pay | 225.15 | |
| go and pay | 316.08 | go and pay | 342.21 | |
| a plus | 85.41 | a plus | 117.06 | |
| A loan of 100 thousand euros | ||||
| Euripur 6 months | Euripur 12 months | |||
| Pay | 307.55 | Pay | 300.2 | |
| go and pay | 421.44 | go and pay | 456.28 | |
| a plus | 113.89 | a plus | 156.08 | |
| 125,000 euro loan | ||||
| Euripur 6 months | Euripur 12 months | |||
| Pay | 384.44 | Pay | 375.25 | |
| go and pay | 526.8 | go and pay | 570.35 | |
| a plus | 142.36 | a plus | 195.1 | |
| A loan of 150 thousand euros | ||||
| Euripur 6 months | Euripur 12 months | |||
| Pay | 461.33 | Pay | 450.3 | |
| go and pay | 632.16 | go and pay | 684.41 | |
| a plus | 170.83 | a plus | 234.11 | |
The increase does not expire in November
It is safe to say that the increase in Euribor in October will not be the last, as the European Central Bank has already ensured that it will continue to raise rates. In fact, there will be a new meeting in December to make monetary policy decisions, which, in practice, means that there will be a new rise in interest rates.
Until then, it wouldn’t be surprising if Euribor rates follow the movement, leading to a new rise in average rates and a new increase in bank installments for mortgage holders whose contracts are reviewed in the last month of the year.