Lisbon, Oct. 1, 2025 (Lusa) - The average interest rate on new mortgage loans, including renegotiations, fell in August for the seventh consecutive month to 2.86%, the lowest figure since November 2022, the Bank of Portugal (BdP) announced on Wednesday.
This decline from the 2.89% rate in July represents the 21st decrease in 22 consecutive months (the exception was January 2025, when it rose 0.03 percentage points), with the rate falling from 3.23% to 2.86% between January and August this year.
In consumer loans, the average interest rate on new operations reached 8.77% in August, a reduction of 0.06 percentage points compared to July, while in loans for other purposes, the average interest rate remained at 3.53%.
According to the Bank of Portugal, in August, new loans to individuals (including new contracts and renegotiated contracts) totalled €2.972 billion, €497 million less than in July.
New loan contracts to individuals reached €2.551 billion, €485 million less than in July, with the decrease being "across all purposes, but more pronounced in housing loans".
New contracts totalled €1.767 billion for housing purposes (-€344 million compared to July), €555 million for consumption purposes (-€78 million) and €230 million for other purposes (-€63 million).
Credit renegotiations reached €421 million, which corresponds to a reduction of €12 million compared to July.
With regard to companies, the average interest rate on new loan operations fell by 0.11 percentage points, from 3.65% in July to 3.54% in August.
This reduction was seen both in loans up to €1 million (-0.02 percentage points to 3.81%) and in loans above €1 million (-0.28 percentage points to 3.16%).
In August, the amount of new loans granted to companies was €2.103 billion, a decrease of €949 million compared to the previous month.
The central bank explains that this development was the result of a decrease in the amount of new contracts (-€1.001 million), offset "very partially" by an increase of €52 million in renegotiated contracts.
New loans of up to €1 million reached €1.227 billion in August, €380 million less than in July, while new loans above €1 million decreased by €569 million to €876 million.
PD/AYLS // AYLS
Lusa
