Variable-rate mortgage: How much will the payment increase in January?

Want a decrease in the installment, instead of a slightly significant increase? Credit intermediaries from Poupança no Minuto may have the solution for you... contact us for more information. Or check the amounts involved in your next installment, considering the unchanged Euribor rates.

Home loan revised in January with installment increasing between 5 and 58 euros.

Housing credit installments with variable Euribor indexed rates reviewed now in January will increase again, between 5 and 58 euros.

According to simulations from Deco/Dinheiro&Direitos, cited by Notícias ao Minuto, even if it rises again, this increase is the least pronounced since 2022.

"A customer with a loan of 150 thousand euros, for 30 years, indexed to the 12-month Euribor and with a 'spread' (bank profit margin) of 1%, will pay from January 776.06 euros, an increase of 58.38 euros compared to the 717.68 euros paid in the last year," the news article reads.  

This aggravation contrasts with what happened last month, in contracts indexed to the 12-month Euribor and with the same characteristics as the simulation in question, which corresponded to an increase of 105.92 euros.

Afterwards, a contract with the same financing conditions as above, but indexed to the six-month Euribor, in January will pay an additional 9.28 euros than in July (last renewal), that is, 798.55 euros.

And a contract with the same conditions, but indexed to the three-month Euribor, now sees an increase of 5.01 euros compared to the last renewal, resulting in a monthly payment of 799.28 euros to be settled.

Comparing with the renewals of December, the worsening of installments in these last two cases is also less significant.

Noteworthy that the simulations presented take into account the averages of the Euribor in December 2023 (six months - 3.927%, six months - 3.935%, and 12 months - 3.679%).

In context, you should know that Euribor rates are rising as a result of the constant increases in the European Central Bank's (ECB) key interest rates. Since February 2022, rates have been rising more significantly due to the increase in inflation in the eurozone.

Only recently, on October 26, 2023, the ECB made the decision to keep the rates unchanged, which happened again at the last monetary meeting on December 14, after 10 consecutive increases.

Increase in installment slows, but could be decreasing.

Even though the increases in variable rate home credit installments are slowing down, there are options that can, instead, lower them.

Why not bet on solutions that can reduce the amount you pay monthly for your mortgage? Comparing with Euribor rates that are currently around almost 4%, there are banks running campaigns with mixed rates starting at 2%. This is still a big and potentially significant difference in the monthly installment.

But how to access these campaigns? You can try to renegotiate the current conditions of your credit with your current bank, but usually, these more advantageous campaigns refer to new mortgages. Which means that you can (and should) transfer your credit to a new bank, in order to have access to similar conditions.

Interested in this option? Contact a credit intermediary from Poupança no Minuto and find out what we can do for you. Through a free service, we show you the most suitable options for your case, and help you decide on the most appropriate solution for you!