New measures for housing credit renegotiation approved

The government has approved a set of measures that allow for the renegotiation of housing credit contracts. Extending the credit term, consolidating credits, making a new credit, or reducing the effort rate for a period of time are some of the solutions presented.

The renegotiation of mortgage loans can be done in contracts up to 300 thousand euros in the following situations:

• When the effort rate exceeds 50%
• When the effort rate increases 5% and exceeds 36%
• When the Bank of Portugal's stress test foresees an increase that makes the effort rate higher than 36%.

Whenever there is a significant increase in the effort rates, banks are obliged to present solutions to the clients. On the other hand, clients can also contact the banks if their ability to pay the loans is at risk.

The law (Decree-Law No. 80-A/2022, of November 25) also provides for the temporary suspension of the fee for early maturity in variable-rate credit contracts, regardless of the value of the credit.

The measures, which will be in force until the end of 2023, only apply to credit for own and permanent housing.

For more information, see the page "Mitigating the costs of mortgage lending - questions and answers".

Source: Government Portal