Fixing the instalment in the Mortgage Loan

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Banco Montepio has implemented the support measures defined by the State regarding Housing Credit. We are with you.

From November 2, 2023, it is possible to fix the mortgage payment for two years. Decree-Law No. 91/2023 establishes the measure of temporary fixation of the provision of credit agreements for the acquisition or construction of permanent housing. The objective of this exceptional and temporary measure is to mitigate the impact of rising interest rates on borrowing costs, making household budget management more predictable.

Frequently Asked Questions.

Which contracts are covered?
Credit agreements for the acquisition or construction of permanent housing.
How does the temporary fixation of the benefit work?
The bank reviews the instalment of the credit agreement, setting its value at the one resulting from the application of the index that corresponds to 70% of the six-month European interbank market reference interest rate (Euribor), plus the spread provided for in the contract. All other conditions of the credit agreement - such as the term and frequency of the revision of the interest rate provided for in the contract - remain unchanged.
What are the access requirements?

- Contract signed until 15/03/2023. In the case of a transfer of ICUs, it may be covered if the initial contract was entered into before 15/03/2023;

 

- With mortgage guarantee;

 

- With variable rate or mixed rate, in a variable rate period;

 

- With a remaining term of more than 5 years;

 

- Who are not covered by an action plan for the risk of non-compliance or an out-of-court procedure for the regularization of situations of non-compliance, under Decree-Law No. 227/2012, of 25 October.

 

- Who are not in arrears or in default of installments;

 

- Whose borrowers are not in a situation of insolvency.

How is the request for the fixing of the benefit made?

The request can be submitted until March 31, 2024, through Montepio24 (Web). Within 15 days of submitting the request, the customer will receive a simulation with the rate setting regime. After that, you have 30 days to adhere or not to the fixing of the benefit.

 

If the credit agreement has more than one borrower, the measure must be accepted by all.

How long is the instalment fixed?

The instalment is fixed from the moment the client decides to join this scheme, and will remain so for the following 24 months. However, the application of the measure ceases if the customer fails to pay the instalment of the contract or requests that the fixing of his instalment be terminated.

 

The measure is suspended if 70% of the 6-month Euribor rate in force at the time of accession is higher than the contracted index.

Is it possible to return to the initial contract before the end of the two years?
Yes, it is possible to resume the conditions initially provided for in the credit agreement, since you can request the cancellation of the application of the measure at any time. Until 31 March 2024, you may apply for a new membership of the measure fixing the benefit.
If I adhere to the fixing of the instalment, does the amount owed change?
The amount outstanding at the end of the instalment is higher than it would have been if it had maintained the initial contractual terms, since during the first 24 months it repaid a smaller fraction of the principal.
What are the general impacts resulting from the application of the schemes on the value of instalments and on the total cost of credit for the consumer?

Under the instalment fixing scheme, the amount outstanding at the end of the instalment is higher than it would have been if it had maintained the initial contractual conditions, since during the first 24 months it repaid a smaller fraction of the principal.

 

This amendment to the contract will be identified in Banco de Portugal's Central Credit Register as "Regular renegotiation":  applicable when there is a change in the initial contractual terms without there being a situation of default on the part of the debtor.