Successive rounds of ECB interest hikes have filtered down to Portugal’s housing market putting an extra 40% on the average monthly mortgage repayment to €370.
This is according to data from the National Statistics Institute (INE) that shows an additional €106 in relation to July 2022, which means a like-for-like increase of 40.2%”.
It is the highest monthly interest on mortgage repayments since January 2009 when the statistics office began compiling such data for the first time.
On the other hand, for the third consecutive month, families are paying more in interest than they are in paying off their mortgages per month to the banks: on average 55% of the mortgage repayments now correspond to interest repayments alone and just 45% repaying the capital.
Taking into consideration an average mortgage repayment of €370 per month, this means that €204 goes on interest and €166 on paying off the capital.