The Lisboeta

Banks are lengthening terms on new mortgages and the Bank of Portugal wants to rein them in

Thursday, 8 January 2026RSS
Banks are lengthening terms on new mortgages and the Bank of Portugal wants to rein them in

Statements by the governor of the Bank of Portugal indicate some “pressures” to soften macroprudential recommendations on credit. The Ministry of Finance may change the rules.

View full article on Público

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Context & Explainers

The State guarantee for young people’s mortgages is a targeted government scheme—a €1.2 billion guarantee line launched about a year ago—designed to help younger buyers obtain mortgage credit by lowering bank risk. By the end of November banks had drawn €626 million, so young residents and first‑time buyers may find it easier to secure loans, though banks still set final eligibility and terms.