|
|
|
| MedNEWS | HOME | |
Lusa - Business News - Portugal: Average monthly mortgage instalments fall for first time since 2021
Lisbon, May.3,2024(Lusa)- The average monthly instalment on mortgage loans in Portugal fell to €423 in March, in what was the first reduction since December 2021, according to data released on Friday by the Bank of Portugal. According to the institution, which regulates and supervises the banking sector, the average monthly instalment of housing loan stock (new and old mortgages) was €423, or €3 less than in February. "This was the first month since the start of the statistical series, in December 2021, in which there was a decrease in the average monthly instalment," it notes in the statistics release. Although there was a drop in the average monthly instalment, the figure for March is €62 higher than in March 2023 (when it was €361) and in comparison with March 2022 the difference is even greater, at €138 (then it was €285). The average mortgage instalment has risen over the last two years in line with the rapid increase in interest rates by the European Central Bank (ECB), in a banking market where the majority of contracts have a variable interest rate. The recent slight drop in Euribor (the European interbank offer rate), as the ECB is expected to cut key rates, has an effect on credit instalments and should continue to do so moderately. Analysts expect Euribor rates to end the year at around 3%. The Bank of Portugal's analysis of loans granted for the purchase of a permanent home also shows that in March, the majority of new contracts had mixed lending rates, equivalent to 74% of the total. In March 2023, only 18% of new home loans were at mixed rates. Mixed rates includes a fixed interest rate for the initial period of the contract, and a variable rate for the rest of the loan. Recent high interest rates have prompted customers to opt for a fixed rate for the first few years as a precautionary measure so that they know what they can expect in monthly instalments, at least in the initial period. The number of contracts with a fixed rate for the entire duration of the loan contract remained residual in March, at just 4% of loans. In general, the banks themselves do not offer this alternative, or it is too expensive for borrowers. As for early repayments of mortgage loans, in March they accounted for 0.88% of the loan stock, down from 0.91% in February. March was the third consecutive month in which the amount repaid early fell. Total early repayments (which includes contracts terminated due to full payment of the debt, credit consolidations in new contracts and credit transfers) accounted for 91% of early repayments in March. IM/ARO // MSF/ARO. Lusa Agency : LUSA Date : 2024-05-04 11:17:00
|
||
ANADOLU AJANSI - AA
AGENCE FRANCE PRESSE - AFP
AGENCE MAURITANIENNE D'INFORMATION - AMI
ATHENS NEWS AGENCY/ MACEDONIAN NEWS AGENCY - ANA / MPA
AGENZIA NAZIONALE STAMPA ASSOCIATA
ALGERIE PRESSE SERVICE - APS
ALBANIAN TELEGRAPHIC AGENCY - ATA
CYPRUS NEWS AGENCY - CNA
AGENCIA EFE,S.A. - EFE
FEDERAL NEWS AGENCY - FENA
CROATIAN NEW AGENCY - HINA
LIBYAN NEW AGENCY - LANA
AGENCE MAROCAINE DE PRESSE - MAP
MIDDLE EAST NEWS AGENCY - MENA
NATIONAL NEWS AGENCY - NNA
SLOVENIAN PRESS AGENCY - STA
SYRIAN ARAB NEWS AGENCY - SANA
TANJUG TACNO - TANJUG
AGENCE TUNIS AFRIQUE PRESS- TAP
PALESTINIAN NEWS & INFO AGENCY - WAFA
FEDERATION OF ARAB NEWS AGENCY - FANA>
INTERNATIONAL PRESS SERVICE -IPS
ORGANIZATION OF ASIAN -PACIFIC NEWS AGENCIES - OANA
EUROPEAN ALLIANCE OF NEWS AGENCIES - EANA
ASSOCIATION OF BALKAN NEWS AGENCIES - ABNA
FEDERATION ATLANTIQUE DES AGENCES DE PRESSE AFRICAINES - FAAPA
