Thousands of Portuguese homeowners will see their mortgage payments rise this month, as the Euribor rates used to set most home loan contracts continue to fluctuate. According to a simulation by consumer watchdog Deco Proteste, households with mortgages linked to three- or six-month Euribor rates—the most common options in Portugal—will face higher installments starting this January.
How Much Are Mortgage Payments Going Up?
For families with variable-rate mortgages linked to the six-month Euribor, the monthly payment for a typical 30-year, €150,000 home loan (with a 1% spread) will rise by €7.41, bringing the new installment to €643.87. Likewise, for loans pegged to the three-month Euribor, payments will increase by €1.87, now totaling €636.46 per month.
Good News for Some: 12-Month Euribor Loans Fall
There is a silver lining for some borrowers: If your mortgage is reviewed annually and indexed to the 12-month Euribor, your monthly payment will actually decrease this month. With the average 12-month Euribor rate in December 2025 being lower (2.268%) than a year earlier (2.436%), the typical installment will drop by €13.93 to €654.29.
Why These Changes Now?
Euribor rates have been edging up. In December, the three-month Euribor reached 2.05% and the six-month Euribor climbed to 2.141%, while the 12-month Euribor actually dipped compared to last year. Mortgage contracts in Portugal are reviewed based on the Euribor rate from the month before the anniversary of the agreement.
How Common Are These Morgtage Types in Portugal?
Latest figures from the Bank of Portugal (as of October) show that 38.5% of Portuguese variable-rate home loans are tied to the six-month Euribor, 25% to the three-month Euribor, and 31.75% to the 12-month Euribor.
What Can Homeowners Do?
If you have a variable-rate mortgage, now is a good time to check when your next rate review is scheduled. Consider speaking with your bank about potential options to manage or refinance your loan, especially if your family budget is tight.
Stay informed on Portugal mortgage news to keep tabs on any further changes to Euribor rates and how they may affect your home loan payments in the future.
