Mortgage rates tumble again  

Six monthly and three-monthly interest rate calculations on mortgages in Portugal have reached their lowest level in 30 years.

A 100,000 euro loan over 30 years, with a six-month Euribor index and a spread of 0.7 percentage points, will cost 460.49 euros a month from this month, representing a reduction of 175.28 euros on a loan of the same amount worked out at the time of the last interest rate revision in September, which was in the region of 635.77 euros.

The Euribor rates fixed at three months averaged 1.943 per cent last month.

Homeowners with the same 100,000 euro loan index linked at this rate will see savings of 133.13 euros against the amount they paid at the time of the last revision in December.

The average Euribor 12-monthly rate in February stood at 2.135 per cent, around a half of the 4.349 per cent in February last year, meaning a saving on a 100,000 loan of 121.78 euros a month.

The Euribor interbank interest rates practised by the European Union’s 57 major banks, the rate at which banks lend to each other, has been falling since October 2008 in a succession of historic minimum rates.

The vast majority of analysts are predicting a European Central Bank cut of 0.5 percentage points from 2.0 to 1.5 per cent following their meeting today (Thursday).

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