As regards the maturity factor, the weighted average of new housing credit operations was 30.6 years, as a result of “almost widespread compliance by institutions with the convergence of the average maturity to 30 years”.
“It was also observed the implementation of measures by institutions that allowed the reduction to intangible amounts of exceedances of maximum limits by age group of borrowers”, states the BdP.
The regulator points out that the concept of “new credit operations” includes those involving borrowers who transfer their contracts from one bank to another, in which they are registered as new loans. These transfers, whose volume increased significantly last year, are therefore included in the data analyzed in this report, meaning that the profile of debtors observed in this document “is not directly comparable with that of previous years”.
In February 2018, as a macroprudential authority, the Bank of Portugal issued a recommendation addressed to credit institutions, relating to new housing and consumer loans entered into with individuals, defining maximum limits on LTV and DSTI ratios, as well as maturity of new loans and the regular payment of principal and interest.
Taking into account the economic situation, which made it difficult to access loans for purchasing a home, the instruction was adjusted on October 16th, in order to reduce the interest rate shock.
Overall, the BdP states that the recommendation is being globally complied with by the sector.
