Mixed rate was the contracted regime in 71% of home loans in 2023.

Do you have a mortgage and want to join this interest rate regime? Talk to a credit intermediary from Poupança no Minuto who, for free, simulates your case and helps you throughout the process! Read the 2023 numbers next.

Mixed rate was the most contracted interest rate in 2023 in housing credit.

In 2023, the mixed interest rate was the most contracted regime in housing credit. The data is from the Bank of Portugal (BdP), shared by Notícias ao Minuto, and indicate that there was a 16% increase from December 2022 to 71% in December 2023. Source: Notícias ao Minuto.

“In 2023, there was an increase in new housing credit operations with a mixed rate (that is, loans with a fixed interest rate in the initial period of the contract, followed by a period where the interest rate is variable), which went from 16% of the amount of new operations in December 2022 to 71% in December 2023”, according to the BdP report cited in the news.

According to the BdP, due to the "preference of borrowers to negotiate housing credit contracts with a mixed rate, the weight of these loans in the housing credit stock increased by 10 pp in 2023, settling at 16% in December".

This increase in the mixed interest rate comes from the increase in interest rates that resulted in the increase in monthly payments for variable rate home loans, from 339 euros in December 2022 to 425 euros in December 2023. Note that half of these loans for own and permanent housing had a installment equal to or greater than 355 euros in December 2023.

"Early repayments of housing credit almost doubled in 2023, rising from 5.5 billion euros in 2022, to 10.1 billion euros. Total early repayments (which include contracts completed by the debtor's debt repayment, credit consolidation in a new contract, and credit transfers to another institution) accounted for 83% of early repayments in 2023," the quote in the news reads.

It is important to emphasize that a mixed interest rate regime implies that you set the rate for an initial period, for example two years, returning to the variable rate after that . That is, it is a regime that makes sense to hire now since rates are only expected to drop in the summer. In addition, there are bank campaigns offering mixed rates at 2.50% if you fix it for one year, unlike the Euribor rates close to 4%.

If this is an interest rate regime that intrigues you, so that you can lower the monthly installment of your mortgage, perform a simulation with us.

You will see how much you can save monthly by switching to the mixed rate, by reviewing the current conditions of your contract and/or transferring the contract to a different bank. Contact Poupança no Minuto and find out how we can help you!