In a constantly shifting financial landscape, we would like to share with you a timely and relevant update: current market conditions suggest that now may be one of the most advantageous times in recent years to apply for or transfer a mortgage in Portugal.
The 12-month Euribor has dropped to levels close to 2%, following the European Central Bank’s decision to ease its monetary policy. This trend has a direct impact on lowering monthly instalments for new variable-rate mortgages — and for those looking to renegotiate existing loans.
In response to this shift, lenders are increasingly offering:
- More attractive spreads
- Promotional campaigns and reduced fees
- Cost-free mortgage transfers
- Substantial monthly savings for borrowers
For example, a €150,000 loan over 30 years can result in monthly savings of up to €130, compared to peak rates seen last year.
While conditions are currently favourable, analysts warn that this downward cycle may soon reach a plateau.
If you are considering buying a home, investing in property, or transferring an existing mortgage, this is a strategic time to act:
- Interest rates at their lowest levels in recent years
- Reduced monthly repayments
- Greater room to negotiate with banks
- Protection from potential future increases in spreads.
