The Euribor rates used to calculate variable-rate mortgages in Portugal showed limited movement in January, resulting in largely stable monthly payments for home loans updated in February, according to idealista simulations. The 12-month Euribor, the most commonly used index for housing credit, averaged 2.245 percent in January, down slightly from December.

Based on idealista’s calculations, a borrower with a €150,000 mortgage, a 30-year term, and a 1 percent spread would pay around €652 per month if the loan is indexed to the 12-month Euribor. This represents a decrease of approximately €2 per month compared with a similar contract signed in January, reflecting the modest decline in the benchmark rate.

The 6-month Euribor, widely used in Portugal, showed virtually no change over the period. As a result, mortgage payments indexed to this rate remain unchanged for borrowers whose contracts are updated in February. Meanwhile, the 3-month Euribor fell slightly, resulting in similarly small decreases in monthly instalments for loans linked to this shorter index.

Impact varies depending on indexation and review date

The effect of Euribor movements depends largely on the index used in each mortgage contract and the timing of rate reviews. Borrowers whose loans are reviewed annually and linked to the 12-month Euribor are seeing slight reductions this month, while those with six-month reviews are experiencing stability rather than change.

idealista notes that although Euribor rates remain above two percent, the limited month-to-month variation has resulted in a period of relative predictability for mortgage holders. This contrasts with earlier periods when sharper fluctuations led to more noticeable adjustments in monthly payments.

The simulations presented by idealista are illustrative and based on standard loan conditions. Actual mortgage payments may vary depending on factors such as the outstanding loan amount, contract duration, negotiated spread, and the specific date on which the rate is revised.

Portugal’s housing credit market is heavily exposed to Euribor movements, as most variable-rate mortgages are indexed to either the 6- or 12-month rates. Even small changes in these benchmarks can therefore affect a large number of households, although the latest figures suggest February will bring stability rather than surprises for most borrowers.

According to idealista, the current environment allows homeowners to plan monthly expenses with greater certainty, as mortgage costs remain close to those seen in recent months. For borrowers approaching their annual or semi-annual review dates, the slight easing in 12-month Euribor rates provides marginal relief, while others will notice little difference in their payments.

As Euribor rates remain within a narrow range, borrowers are encouraged to monitor future updates, particularly if their contracts are due for revision later in the year. For now, February’s figures point to a month of steady housing credit costs for Portuguese mortgage holders.