Mortgage rates fall again.jpg

Mortgage rates fall again

Mortgage holders received some good cheer at the end of the year as the Euribor interest rate index, which has steadily fallen since November, dropped again.

December 24 saw the three-month Euribor index fall below three per cent, to 2.991 per cent, its lowest rate in recent years.

The six-month Euribor index, which stood at 3.061 per cent on Christmas Eve, was also expected to fall.

According to the calculations, for a mortgage of 150,000 euros over 35 years, with a spread of one per cent, the repayment this month could fall by a minimum of 161 euros.

Although the actual Euribor index that will determine mortgage repayments this month was due to be announced on Wednesday, the last day of 2008, it was expected to follow the current trend and fall.

In case it did not fall, the Central European Bank is expected to lower interest rates, in an effort to combat the current economic crisis. 

During his Christmas Day message, Portugal’s Prime Minister, José Sócrates, said that he would do everything to help the people overcome the difficulties of the economic crisis in 2009.

“I want to guarantee to you that we have no other intention except defending the national interest at this particularly difficult time,” he said. “This means using all of the resources we have to help families, workers and companies, and to promote economic investment.”

The government’s plan for 2009 includes the promotion and creation of jobs as well as measures to protect families such as increasing the minimum wage and family allowance benefits.

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