Latest news and stories about mortgages in Portugal for expats and residents.
Arrow Global CEO João Bugalho warns that rising interest rates could lead to an increase in non-performing loans, though he expects the impact to be less severe than the post-financial crisis period.
Escalating conflict in Iran has triggered inflationary pressures, leading to an inevitable rise in interest rates that will impact monthly bank payments starting in April.
Households with mortgages tied to the six-month Euribor — the most commonly used term — will see their monthly instalments increase in February. The change raises borrowing costs and is likely to squeeze household budgets as loan repayments climb.
Rui Lopes, chief executive of Simplefy, says recent lengthening of mortgage repayment terms may be a temporary market response rather than a permanent shift. He argues 100% financing is a pragmatic solution to the widespread shortfall in household savings for deposits, while noting longer terms can mismatch actual housing tenure since borrowers typically do not stay in their first home for the full 30–40 years implied by those mortgages. The remarks highlight trade-offs between short-term access to property and longer-term affordability and risk.
Economist João Rodrigues de Santos warns that a public guarantee scheme is encouraging young people to take on mortgages with high repayments and minimal financial headroom, just as Portugal faces major international uncertainty. With wages among the third‑worst in the EU, the end of pandemic-era supports and the prospect of rising interest rates, many borrowers — including first-time buyers and expats — are exposed to rapid financial distress. The combination of weak income growth, a heated property market and policy incentives to lend underestimates downside risks; the commentator argues for tighter underwriting, better safety nets and targeted borrower support to reduce systemic vulnerability.
Update: The economist reiterated in a CNN Portugal piece that the public guarantee is actively pushing young buyers into mortgages with high repayments and little buffer amid heightened international uncertainty. He highlighted that the withdrawal of pandemic-era supports and the prospect of rising interest rates mean many borrowers — notably first-time buyers and expatriates — could rapidly fall into financial distress, strengthening his call for stricter underwriting standards and targeted safety nets to contain systemic risk.
Vítor Costa, executive editor of CNN Portugal, anticipates how housing credit is expected to evolve.
The decision was announced this Thursday. The interest rate that serves as a benchmark for housing loans remains at 2% for the seventh consecutive time, maintaining the same value since June of last year.
The Euribor rate rose today for three, six, and 12 months compared to Thursday.
An increase that appears to continue the monthly average from March, during which the Euribor rose across all three terms.
The Governor of the Banco de Portugal warns that consumers may only be comparing a portion of the market. Consequently, the banking supervisor is preparing a legal review to reduce conflicts of interest.
The bank, which bought Barclays' operations 10 years ago, says it has an “aggressive” mortgage lending policy but is “very selective” when choosing clients. Out of “prudence,” it has granted fewer loans with collateral.
The three, six, and 12-month Euribor rates fell compared to Monday, but March ends with the monthly average rising significantly across all three terms. Following Tuesday's changes, the three-month rate dropped to 2.079%, remaining below the six-month (2.475%) and 12-month (2.870%) rates. The monthly average for March rose across all terms, most sharply in the longer ones. The three-month average rose 0.098 points to 2.109%, while the six-month and 12-month averages increased by 0.178 points to 2.322% and 0.344 points to 2.565%, respectively. The six-month rate, now the most common in Portugal for variable-rate mortgages, fell 0.054 points today. Bank of Portugal data from January shows the six-month rate accounts for 38.93% of variable-rate home loans, with 12-month and three-month rates at 31.78% and 24.98%. On March 19, the ECB maintained its key interest rates for the sixth consecutive meeting. The next meeting is scheduled for April 29-30 in Frankfurt.
The article examines the financial literacy of Portuguese consumers, noting a preference for variable-rate mortgages over fixed-rate options, leaving them vulnerable to interest rate hikes. With the ECB warning of potential rate increases due to the conflict in Iran and the threat to the Strait of Hormuz, the author questions the long-term financial planning of Portuguese households, who are heavily exposed to market volatility compared to their European counterparts.
Around 24% of new credit operations for permanent primary residences had financing above 90%, driven by the public guarantee, at a level equivalent to that before the entry into force of macroprudential measures, the Bank of Portugal announced today.
The rise in Euribor is associated with the uncertainty created by the war in the Middle East.
The Bank of Portugal warns that loans with state guarantees have contributed to increasing debt levels and the debt-to-income ratio for those taking out mortgages to buy a home.
The state guarantee is bringing more young people into the market, but also more debt, longer terms, and higher risk in specific segments. The state guarantee for young people may drive up house prices and carries macroeconomic risks.
The Euribor rates, which serve as the basis for calculating home loan repayments, rose at three, six, and 12 months, with the two longer terms reaching their highest levels since February 2025 and October 2024, respectively. The six-month Euribor rate advanced to 2.468%, up 0.062 points from the previous session.
The share of foreigners in housing credit has practically doubled in five years, in a list led by Brazil by a wide margin over other nationalities. This applies to both the number of contracts signed and the total amount contracted, according to data released this Wednesday by the Banco de Portugal. The supervisor...
The next ECB monetary policy meeting will take place on March 18 and 19 in Frankfurt, Germany
Oil prices have risen and continue to climb, which brings a potential inflationary crisis onto the horizon
Buying a house in Portugal seems impossible? We discuss 100% mortgages, the housing crisis, banks, and mistakes to avoid with João Zoio.
Euribor rates, which serve as the benchmark for variable-rate mortgage loans, rose this Tuesday across all maturities. With these changes, the three-month rate, which climbed to 2.029%, remains below the six-month (2.161%) and 12-month (2.225%) rates. The six-month Euribor rate, which in January ...
Repayments on a €150,000 loan, due for review in February, will move to between €634 and €652.
The Euribor rate rose today for the three- and six-month terms and fell for the 12-month term compared with Thursday, and ends January with averages declining across all three maturities.
CNN Portugal's executive editor, Vítor Costa, predicts that the instalments paid to banks may rise or fall following a drop in Euribor rates in January.
Borrowers whose mortgage is up for review next month will only see a reduction in their repayment if their contract is indexed to the 6‑month or 12‑month Euribor. Holders of loans indexed to the 6‑month Euribor will see a slight increase in their repayment. Despite these fluctuations, Euribor rates fell in January across all maturities for the first time in five months. Check your situation.
The total stock of loans to individuals increased by 9% year‑on‑year, reaching €145 billion at the end of 2025.
Stabilised interest rates, steady demand and greater financial literacy are shaping the credit sector. Rui Lopes, CEO of Simplefy, explains why 2026 could repeat the positive performance of 2025 and what challenges the market faces.
Bankinter reports it has utilised approximately 30% of the public guarantee allocated for housing and intends to utilise the full quota, aiming to reach 100%.
