October will bring the first big increase in the installments of the mortgage loan agreement, as they will already include the ‘new’ Euribor rates, which have risen a lot compared to the previous period, whether in the rates contracted at 3, 6 or 12 months – in the case of a loan of 150 thousand euros, increases can start at 85 euros and can reach close to 200 euros.
The bill will be higher for those who have contracts indexed to Euribor at 12 months and who will feel the rise in interest rates for the first time in 2022. As the contract is reviewed from year to year, its holder will feel the difference when paying the 642.97 euros to the bank. Twelve months ago, I paid 449.44 euros, a difference of 193.53 euros in the mortgage payment.
Prime Minister António Costa, at a time when the increase in the cost of living puts greater pressure on families, admitted that “it is likely that there will be” government support for housing credit holders, although he still did not clarify what the plans are. of the socialist executive.
Since the European Central Bank started to raise interest rates, in a strategy aimed at bringing inflation to 2%, Euribor rates have risen sharply. And after 79 consecutive months in which the three, six and 12-month Euribor were at negative values, in April, the 12-month Euribor returned to positive values and is currently above 2%. The six-month Euribor is already above 1% and the three-month rate is approaching that level.
With the rise in Euribor, increases in installments also arrived, which are reviewed every three, six or 12 months according to the contracted indexing rates. Whoever reviews the mortgage loan installment in October will count the average Euribor for September: this is why the increase in installment prices will be an even more violent ‘hit’ than it has been so far.