Mortgage credit renegotiations fell to 355 million euros in May, marking a 51.4% year-on-year decline, according to data published today by Banco de Portugal (BdP).
Data from the banking regulator indicates that in May of this year, mortgage credit agreements worth 355 million euros were renegotiated, 59 million euros less than in April and 375 million euros less than in the same month last year.
Mortgage renegotiations were among the main factors contributing to the reduction in the total value of renegotiations, which dropped 49.4% year-on-year to 391 million euros. Sequentially, the decline was 60 million euros.
Overall, new loan operations—which include entirely new credits and renegotiated contracts—amounted to 3.289 billion euros, an increase of 11.9% compared to a year ago and 284 million euros higher than in April.
Of this amount, 2.898 billion euros pertained to new contracts, representing a 33.7% year-on-year increase and 344 million euros sequentially.
In housing credit alone, including new contracts and renegotiations, the contracted value was 2.045 billion euros, a 46.5% increase compared to the same month in 2024 and 250 million euros more than April.
In May, more than half (58%) of the amount of new contracts for house purchases were made by young individuals aged 35 or under, a figure equivalent to the previous month.
In consumer loans, the average rate of new consumer operations decreased to 8.85% in May, from 9.03% in April, while in loans for other purposes, the average interest rate fell by 0.03 percentage points to 3.82%.
For companies, new loan operations totaled 2.717 billion euros, 754 million euros more than in April and 38.8% more than a year ago.
“New contracts increased by 694 million euros to 2.481 billion euros, while renegotiated contracts rose by 60 million euros to 236 million euros,” explains the BdP.
For companies, the average interest rate on new loan operations dropped by 0.33 percentage points compared to April, to 3.77%, from 5.55% a year earlier.
