The house payment paid to the bank will reduce again in March for contracts indexed to three and six-month Euribor, but only by around four euros, according to the Deco/Dinheiro&Direitos simulation.
This is the second month in which these installments have been reduced, after almost two years of them rising, and is due to the slight drop in Euribor rates, which puts them at values lower than those of the last review of the contracts.
However, the reduction is small compared to the sharp increase in installments since 2022, which has led to many housing loans rising significantly (especially the most recent and higher-value ones), leaving families in difficulties.
A client with a loan worth 150 thousand euros, for 30 years, indexed to the six-month Euribor and with a spread (bank profit margin) of 1%, you will pay 796,18 euros from March onwards, which means 3,93 euros less than what you have paid since September.
As regards loans indexed to three-month Euribor, the house installment – for the same conditions – drops to 798,19 euros, 4,48 euros less per month compared to the last review, in December.
In the case of contracts indexed to the 12-month Euribor revised in March, there is still an increase in the installment since this month the average 12-month Euribor rate was still higher than in February 2023.
A client with a loan worth 150 thousand euros, for 30 years, indexed to the 12-month Euribor and with a spread (bank profit margin) of 1%, you will pay 775,34 euros from March onwards, 12,28 euros more than what you have paid since March 2023.
These simulations were calculated taking into account the Euribor averages in February, which were 3,901% for six months, 3,923% for three months and 12% for 3,671 months.
The evolution of Euribor interest rates is closely linked to the increases or decreases in the European Central Bank (ECB) policy interest rates.
Euribor fell sharply in December, after the ECB decided to leave rates unchanged in October and December and then expected a cut in the short term. At the beginning of 2024, the decline has been less significant as the market now expects that the ECB's interest rate cut will not be as quick as expected.
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.
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