According to Deco/Dinheiro&Direitos modeling, mortgage payments paid by the bank’s customers on mortgage loans will rise sharply in August on contracts indexed to Euribor for three, six and 12 months compared to the latest changes.
A client with a loan of 150 thousand euros, for a period of 30 years, indexed to Euribor for six months and with a “spread” (bank profit margin) of 1%, from this month starts paying 515.24 euros, which means an increase of 68 .36 euros compared to the last revision in February.
In the case of a loan under the same conditions (amount and maturity), but indexed to a three-month Euribor, the client pays 485.01 euros, which is 38.72 euros more than he has paid since May.
These values were calculated taking into account the average Euribor values in July: 0.466% for six months and 0.037% for three months.
For loans indexed to 12-month Euribor, the mortgage payment – for a loan under the above conditions – from August will be 553.83 euros, which is 104.45 euros more than was paid in August 2021. In this case, the cost was calculated from taking into account the average Euribor in July, which for 12 months amounted to 0.992%.
Changes in Euribor interest rates are closely linked to increases or decreases in ECB key interest rates.
After several years in negative territory, the Euribor began to rise more significantly since February 4, after the European Central Bank (ECB) admitted that it could raise key interest rates this year due to rising inflation in the eurozone, which happened this month. when a 50 basis point rate hike was announced at the July 21 meeting.
This increase, adopted by the ECB, which covered three key interest rates, was the first in 11 years to curb inflation.
The ECB also indicated that it would continue raising interest rates at its next meetings.
The six-month Euribor rate most frequently used in Portugal for home loans has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).
The three-month Euribor on July 14 entered positive territory for the first time since April 2015.
The 12-month Euribor turned negative on February 5, 2016, having been positive since April 21.
Euribor rates are the main indicator in Portugal in banking contracts that finance the purchase of a house. The most commonly used is the six-month Euribor rate, followed by the three-month rate.
Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.
Author: Lusa
Source: CM Jornal
