{"id":174875,"date":"2025-10-02T09:59:09","date_gmt":"2025-10-02T09:59:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/174875\/"},"modified":"2025-10-02T09:59:09","modified_gmt":"2025-10-02T09:59:09","slug":"cheaper-mortgage-loans-until-2028","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/174875\/","title":{"rendered":"Cheaper mortgage loans until 2028"},"content":{"rendered":"<p>Uncertainty continues to hover over the evolution of mortgage interest rates. This is because the Euribor reduction was halted in the last two months, after the European Central Bank (<a href=\"https:\/\/www.ecb.europa.eu\/home\/html\/index.en.html\" target=\"_blank\" rel=\"nofollow noopener\">ECB<\/a>) decided to keep its benchmark rates unchanged. But how will this evolve in the future? The <a href=\"https:\/\/www.cfp.pt\/en\/cfp\" target=\"_blank\" rel=\"nofollow noopener\">Public Finance Council<\/a> predicts that the 3-month Euribor will fall to 1.9% in 2026, returning to highs only after 2028.<\/p>\n<p>The Public Finance Council&#8217;s projections, released last week, reveal that the 3-month Euribor is expected to end 2025 at 2.2%, followed by a two-year period during which it will be lower, at 1.9%. If so, it means that families with mortgage loans indexed to the 3-month Euribor should see relief on their mortgage payments between 2026 and 2027.<\/p>\n<p>Behind these forecasts are the European regulator&#8217;s decisions: &#8220;With the inflation rate reaching levels in line with the monetary policy objective, the ECB chose to keep its benchmark interest rates unchanged in July and September. After a cycle of eight consecutive 25-basis-point reductions, which began in June 2024, the deposit facility interest rate was cut in half by June of this year (from 4.0% to 2.0%). (&#8230;) The transmission of the reduction cycle is visible in the evolution of the 3-month Euribor&#8221;.<\/p>\n<p>Only in 2028 is the average 3-month Euribor, which &#8220;is based on the expectations implicit in futures contracts,&#8221; expected to rise to 2.1%. And in 2029, it should rise again to 2.3%, the document further predicts. These increases should be reflected in higher mortgage payments, which are updated quarterly.<\/p>\n<p>&#8220;In line with the futures market, the 3-month Euribor rate was updated to a lower value by approximately 25 basis points over the projection horizon, reflecting a more accommodative monetary policy in the second half of 2025,&#8221; the Public Finance Council further explains.<\/p>\n<p>It should be noted that the 3-month Euribor represents approximately a quarter of variable-rate homeownership and permanent mortgage loans in our country, according to data from the <a href=\"https:\/\/www.bportugal.pt\/en\" target=\"_blank\" rel=\"nofollow noopener\">Bank of Portugal<\/a>. The most representative rate is the 6-month Euribor (with 38% of the total), followed by the 12-month Euribor (with 32% of contracts).<\/p>\n","protected":false},"excerpt":{"rendered":"Uncertainty continues to hover over the evolution of mortgage interest rates. This is because the Euribor reduction was&hellip;\n","protected":false},"author":2,"featured_media":174876,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-174875","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/174875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=174875"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/174875\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/174876"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=174875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=174875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=174875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}