Mortgage Credit: 74% of new loans taken out at mixed rate
The data from BdP is clear: three quarters of new housing credits contracted in the month of July were contracted with the mixed interest rate regime. Check out the numbers.
Three out of every four home loans contracted with a mixed rate in July.
According to data from the Bank of Portugal (BoP), shared by Notícias ao Minuto, the new housing loans in July were mostly contracted with mixed interest rates.
Three out of four new home loans opted for the mixed regime: a fixed rate in the initial period, then switching to variable.
Thus, totaling 74% of the total contracted in July and 26.8% of the housing credit 'stock'.
"In July, 74% of new housing loans were taken out at a mixed rate (i.e., with a fixed interest rate in the initial period of the contract, followed by a period with a variable interest rate)," reads the news quoting the BdP.
"The increase in the weight of new mixed-rate operations has been reflected in the recomposition of the housing credit stock: in July, these contracts already represented 26.8% of the housing credit stock, which compares with 6.4% in December 2022," it reads.
This increase in new mixed-rate mortgage operations has been observed since 2023, due to rising interest rates. It has increased from 16% of new operations in December 2022 to 74% in April 2023.
In addition, the data also indicates that early repayments of housing credit represented 0.89% of the loan stock in July, showing an increase of 0.08 percentage points compared to the previous month.
"The total early repayments (including contracts finalized by debtors amortization, credit consolidations into a new contract, and credit transfers to another institution) accounted for 90% of early repayments," the news explains.
It should also be noted that the June data points to the six-month Euribor as the most used in variable rate permanent own housing credits, representing 37.5% of the 'stock', while the 12-month Euribor represented 33.7% and the three-month Euribor 25.7%.
Do you want to hire a home loan, and still have doubts about the interest rate regime? The credit intermediaries at Poupança no Minuto collect and compare offers with you, so you can find the most advantageous one for you! The process is free of charge and saves you from all the bureaucracy, saving money in your wallet. Contact us now: