October will bring the first big increase in mortgage payments

October will bring the first big increase in the maturities of the mortgage contract, since they will already include the “new” Euribor rates, which have increased a lot compared to the previous period, whether in the contracted rates at 3, 6 or 12 months – in the case of a loan of 150 thousand euros, the increases can start at 85 euros and can reach almost 200 euros.

The bill will be higher for those with contracts pegged to 12-month Euribor 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 rising cost of living is putting increased pressure on families, admitted that “it is likely that there will be” government support for holders of housing loans, although he still did not specify what the plans of the socialist executive are.

Since the European Central Bank started raising interest rates, in a strategy to bring inflation down to 2%, Euribor rates have risen sharply. And after 79 consecutive months in which the 3-, 6- and 12-month Euribor were at negative values, in April the 12-month Euribor returned to positive values ​​and is currently above 2%. The 6-month Euribor is already above 1% and the 3-month rate is approaching this level.

With the rise of the Euribor, there have also been increases in maturities, which are reviewed every three, six or twelve months depending on the indexation rates contracted. Anyone who reviews the mortgage maturity in October will count the average Euribor for September: this is why the rise in the prices of the maturities will be an even more violent “blow” than it has been so far.

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