This increase is included in the monitoring report on macroprudential measures in Portugal for 2025 and is mainly due to the public guarantee for home purchases for young people aged 35 or younger.

"This increase stems from loans granted under the State guarantee, established by Decree-Law No. 44/2024, in which 85% of loans presented an LTV [loan-to-value] ratio of 100%," explains the BdP in the document.

The LTV index is the ratio of a property's total credit to the lesser of the appraised value and the purchase price.

In the total number of mortgages granted last year, the weight of new loans with an LTV ratio greater than 90% increased from a residual value (0.1%) in 2024 to 19%.