According to ECO, the interest rate on new mortgage loans fell again for the seventh month in a row, from 2.88 percent in March to 3.75 percent in April, in accordance with data released on 5 June, by the Bank of Portugal.

This trend meant that the interest rate on mortgage loans in Portugal was below the average for Eurozone countries, which stood at 3.77 percent in April. Data by the Bank of Portugal shows this is the first time this has happened since September 2022.

The Bank of Portugal also indicated that, in April, 75 percent of new home loans were contracted at a fixed rate (for example, with a fixed interest rate during the initial period of the contract, followed by a period in which the interest rate is variable).

“This is the highest figure since the start of the statistical series in December 2021”, stated the organisation led by Mário Centeno. At the end of April, mixed-rate loans accounted for 22 percent of the housing loan stock.

In terms of early repayments of mortgage loans, the Bank of Portugal announced that these represented 0,93 percent of the stock of loans in April. 0.05 percentage points more than in the previous month.

“Total repayments (which include contracts finalised due to repayment of the debtor’s debt, credit consolidations in a new contract, and credit transfers to another institution) accounted for 91 percent of early repayments in April”, reads the statement.

The Bank of Portugal’s data also emphasises that the number of new loan contracts for private individuals increased by €71 million in April, standing at €2,061 million, especially for housing (+€31 million, to €1,339 million).

There was also an increase in consumer credit (+€30 million, to €491 million) and for other purposes (+€10 million, to €321 million).

On the other hand, credit negotiations fell by €138 million, totaling €527 million in April.

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