The house payment will rise in September for loans with variable rates indexed to Euribor at three, six and 12 months that are reviewed in that month. The information is based on simulations carried out by Deco Proteste.
Euribor rates have been rising, which directly influences the value of mortgage payments with variable rates. When contracts are reviewed, the new payment value is calculated based on the most recent rate.
The three, six and 12-month terms are the most commonly used in home loans in Portugal. Each of these terms is reviewed in its corresponding period, meaning different borrowers feel the changes at different times.
Deco Proteste, a consumer protection association, made these simulations available to help borrowers anticipate the impact on their family budgets. Homeowners with variable rate mortgages should therefore prepare for an increase in their monthly payment from September.
