For a €150,000 mortgage over 30 years, with a 1% spread, the monthly increase is around €25 to €91, depending on the Euribor rate used in the contract. ECO reports that borrowers facing a review this month will see the largest increases since late 2023.

The biggest change is for those with loans linked to 12-month Euribor. Simulations by Deco Proteste/Contas e Direitos, reported by Lusa, put the new monthly payment at €737.65. That is €91.24 more than the payment set a year ago.

For a household paying that extra amount every month until the next annual review, the increase adds up to roughly €1,095 over the year.

Borrowers with six-month Euribor will also see a noticeable change. In the same example, their monthly payment rises by €50.64 to €709.39, compared with the amount set at the previous review in April.

The increase is smaller for three-month Euribor, although it still means a higher bill. The monthly payment reaches €684.92, up €24.76 from the amount set in July.

Why the payments are changing

With a variable-rate mortgage, the interest rate combines Euribor with the spread agreed with the bank. When the loan reaches its scheduled review, the Euribor component is updated.

Banco de Portugal explains that these reviews follow the term of the chosen rate. A loan linked to three-month Euribor is reviewed every three months, while six- and 12-month contracts are reviewed every six months and once a year, respectively.

This means the September rise will reach households at different times. Borrowers whose next review falls later in the year will have their payment calculated using the relevant monthly average at that point.

Fixed-rate mortgages are unaffected by these Euribor movements. The same applies to mixed-rate loans while they remain within their agreed fixed-rate period.

What it means for your mortgage

The figures above give an idea of the increase, but each loan has its own calculation. The amount still owed, the remaining repayment period, the spread and the Euribor term all affect the monthly bill.

Contas Poupança has published a simulator for borrowers to check their own figures. The information needed can usually be found on the latest mortgage statement or in the bank's app.

For households with a review coming up, checking those details will give a clearer picture of how much they need to set aside each month.

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