The mortgage payment will increase again in June due to the rise in Euribor rates, with increases that may reach €13 per month.
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Author: Redaction
Mortgage payment rises again
The mortgage payment is expected to rise again in June for thousands of families with home loans indexed to Euribor. After a prolonged period of falling interest rates that began in 2024, the trend has reversed in recent months, reflecting developments in the financial markets and expectations surrounding the monetary policy of the European Central Bank (ECB).
According to simulations released by DECO, a family with a €250,000 mortgage, a 30-year term and a mixed rate indexed to the six-month Euribor could pay an additional €12.84 per month at the next mortgage payment review. The increase results from the rise in Euribor recorded in recent weeks.
Euribor drives higher costs
The evolution of Euribor continues to be the main factor behind changes in the mortgage payment. In the case of contracts linked to the 12-month Euribor, the increase could be around €9.81 per month for a €250,000 loan. For contracts indexed to the three-month Euribor, the expected increase is approximately €6.16.
The impact varies depending on the outstanding capital, the spread agreed with the bank and the remaining term of the loan. For a €150,000 mortgage, for example, the mortgage payment could increase by around €7.70 if it is linked to the six-month Euribor.
Market forecasts point to a possible increase in the ECB’s key interest rates during June, in a context marked by persistent inflation and international geopolitical instability. Even so, the relationship between ECB decisions and Euribor movements is neither automatic nor immediate.
Families feel pressure on household budgets
The increase in the mortgage payment comes at a time when many families continue to face high costs for energy, food and other essential goods. Although the expected increases are lower than those recorded during the peak of the inflation crisis, they represent a new financial burden for homeowners with mortgages.
Recent data also show a change in financing habits in Portugal. Most new contracts are currently signed with mixed rates, combining an initial fixed-rate period with a subsequent variable-rate period. This option has helped reduce the immediate impact of Euribor fluctuations.
Market follows interest rate developments
The mortgage payment will continue to depend on the evolution of interest rates in the coming months. Despite some recent stabilisation, the Euribor trend remains slightly upward, which could lead to further upward reviews for some contracts.
Experts recommend that mortgage holders regularly monitor market conditions and assess possible alternatives with financial institutions. Proactive household budget management may be essential to absorb future increases in mortgage payments and reduce the impact of interest rate fluctuations.
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