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Fall of the mortgage interest rates in Portugal

Published on 9th November, 2011

The ECB has changed the interest rates for the first time since June - the first decrease in the last 30 months - of the EURO ZONE reducing it from 1,50 to 1,25 %. On the 3rd November base rate was cut by 0.25% to a rate of 1.25% & this is now in immediate effect.

It is anticipated by the markets that we may get an even further rate cut before the end of the year.

The direct impact of this is on the Euribor rates that the banks in Portugal use when setting the full mortgage rate, it is made up of the Euribor rate ( which fluctuates up and down) and the spread which is fixed for the life of the mortgage as determined by the bank. The Euribor rate has only moved down by 12 points on the back of the ECB cut from 1.6 to around 1.48, added with a typical spread of 3.75% at the moment you are looking at a figure of around 5.25%

For more information on obtaining a mortgage in Portugal email info@portugalproperty.com or call free on +44(0) 800 014 8201 and a member of the Portugal Property team will be happy to assisst.

Published in: News and Updates