According to the National Institute for Statistics Portugal (INE), the interest rate reached 1.089 percent in June 2016, falling to 1.066 percent in the following month and, since then, only in July this year did INE record a higher rate.

In the contracts signed over the last three months, the interest rate was 1.305 percent last July, up from 1.267 percent in the previous period.

For financing ‘house purchase’, the most relevant in the whole of housing loans, the implicit interest rate for total contracts rose to 1.109 percent, 0.6 basis points more than in June, and in contracts signed in the last three months the interest rate for that destination of financing increased by 3.4 basis points, to 1.281 percent.

Considering all contracts, the average value of the instalment due rose €1 to €248, of which €49 (20 percent) corresponded to interest payments and €199 (80 percent) to amortising the capital.

In July, the average outstanding capital for all contracts rose by €39 to €52.954.

For the contracts signed in the last three months, the average outstanding capital stood at €100,655, €905 more than in June.