Mortgage loan renegotiations fell in October to 507 million euros, the first drop in a chain since June, according to data published this Wednesday, 3rd, by the Bank of Portugal (BdP).
According to data from the banking regulator, in October this year, housing credit contracts worth 507 million euros were renegotiated, five million euros less than in September and compared to the 545 million euros renegotiated in the same month last year.
Renegotiations on housing credit were, in fact, one of the main factors for the reduction in the overall value of renegotiations, which fell by 8.3% year-on-year, to 538 million euros. Overall, the drop was eight million euros.
In total, new loan operations, which include completely new credits and renegotiated contracts, amounted to 3,623 million euros, 143 million euros more than in September and 17.4% more than a year ago.
Of this amount, new contracts for individuals represented 3,085 million euros, the highest value in the 11-year series, growing 23.4% year-on-year.
In housing credit alone, between new contracts and renegotiations, the contracted value was 2,160 million euros, 77 million euros more than in the previous month.
The BdP adds that, in October, young people up to the age of 35 represented 61% of the total amount of new contracts for permanent home ownership, one percentage point more than in September and “in line with what has been observed in the last eight months”.
In consumer loans, the amount of new contracts also reached historic highs, reaching 640 million euros (9.8% more year-on-year and 54 million euros more than in September).
In October, the average interest rate for new consumer loan operations rose 0.09 percentage points compared to September, to 8.86%, while for loans for other purposes there was a reduction of 0.07 percentage points, to 3.47%.
Among companies, new loan operations totaled 2,540 million euros, 306 million euros more than in September.
“This evolution reflected the increase in the amount of new contracts (plus 298 million euros) and renegotiated contracts (plus 8 million euros)”, says the BdP.
For companies, the average interest rate on new loan operations rose 0.06 percentage points compared to September, to 3.67%, against 4.57% a year earlier.
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