President of the Republic Marcelo Rebelo de Sousa has already unveiled a diploma presented by the government a few weeks ago with “exceptional” measures to mitigate the impact of higher interest rates on floating rate housing loans.
In a note from the Presidium, published this Thursday, it can be read that “Realizing the importance of this measure for the many Portuguese families who have financed their home purchase with a mortgage loan and therefore may have exceptional measures to manage these loans, the President of the Republic has enacted the Decree Government that establishes measures to mitigate the effects of the increase in the base rates of loan agreements for the purchase or construction of permanent housing.
Who (and how) can ask to renew a loan, with a new diploma created by the Government?
Full details of the new legislation are not yet known. But, in general, someone who has a mortgage (and eventually other consumer loans) and who has experienced a rapid increase in the share of their efforts – to more than 36% of net income – will have an “open path” to renegotiate negotiations with bank. a way to ease monthly obligations, the government indicated on 3 November.
This revision may lead to changes such as loan extensions (reversible over the next five years), grace period for interest payments for a certain period, loan consolidation and other hypotheses. Ultimately, the client has a “negotiating weapon,” the government says, not having to pay an early amortization fee, a way to remove a possible barrier to switching banks.