This is the first time in around two years that there has been a reduction in installments on credits that use the 12-month index, while in contracts indexed to Euribor at six and three months this will be the fourth month of reduction.
According to simulations for Lusa by Deco/Dinheiro&Direitos, a client with a loan worth 150 thousand euros, for 30 years, indexed to the six-month Euribor and with a ‘spread’ (bank’s profit margin) of 1%, From May onwards, you will pay 790.45 euros, which means 25.36 euros less than what you have paid since November.
As regards loans indexed to three-month Euribor, the installment for the house — for the same conditions — drops to 794.72 euros, that is, 3.65 euros less than the installment paid since the last renewal, in February.
In the case of contracts indexed to the 12-month Euribor revised in May, the installment drops by 4.87 euros, to 778.23 euros.
These values were calculated taking into account the Euribor averages in April of 3.838% for six months, 3.885% for three months and 3.703% for 12 months.
The average Euribor considered for the purposes of reviewing a variable rate loan is that of the month prior to the signing of the credit contract.
Euribor rates have been falling across different deadlines, reflecting the expectation that the European Central Bank (ECB) is preparing to start cutting its key rates.
At the last monetary policy meeting on April 11, the ECB maintained reference interest rates at the highest level since 2001 for the fifth consecutive time, after having made 10 increases since July 21, 2022.
The ECB’s next monetary policy meeting takes place on June 6 in Frankfurt.
with Lusa
