Decree-Law no. 91/2023 of October 11 was published, setting forth a measure to temporarily fix mortgages instalments for the purchase or construction of a permanent home. This act reinforces the extraordinary measures and support within the scope of mortgage loans, by allowing, at the request of the borrower, a review of the instalment of the loan agreement. Moreover, it sets the respective value at that resulting from the application of the index corresponding to 70% of the reference interest rate on the six-month European interbank market (Euribor), plus the spread provided for in the contract, with the other conditions of the credit agreement remaining unchanged, namely the term and frequency of the revision of the interest rate provided for in the contract.
This change will apply to the instalments falling due in the following 24 months, whereby the amount corresponding to the difference between the instalment due and the value of the fixed instalment will be deferred and amortized:
1) In the last two years of the credit agreement, when the mortgage’s remaining term is less than six years, after the end of the instalment fixing period; or
2) From the fourth year after the end of the instalment fixing period, when the mortgage’s remaining term is equal to or greater than six years, at the end of the instalment fixing period.
Decree-Law 91/2023 came into force on October 12th and is available here.
