We have followed with great interest the constant changes that the financial sector lives in Portugal. After the crazy years of consolidated credit, the crisis closed the credit boom from 2008. Adventurers who obtained credit earned it with very high interest rates, especially in housing credit where spreads reached 6% -7%
Is Housing Credit Back?
After such spreads of 6% -7% and after some easing in the Portuguese financial market, banks are being forced to lend money to their clients. We have already begun to see some personal credit coming up (with rates that have also been coming down which may be worth asking for a new loan to settle the old loan) and now it is the turn of the housing loan.
Banks have to lend money and will start with customers or operations with more guarantees. If you want to deepen this topic we suggest you read our article “Is housing credit back?”
What if I have Spread greater than 3% -4%?
If the spread of your housing credit is greater than 3% -4% it will be time to find an alternative. If your professional situation has not changed for the worse you may be in very good conditions of being able to reduce the charges with your mortgage loans currently.
We already see some banks giving home loans with rates below 2% -3%. Not many, not all operations. However, if you have credible and cost-free advice you will lose nothing in evaluating your chances of saving money on your home loan.
What if you have more Credits than Mortgage?
If you have more credits you can always look for ways to reduce benefits and thereby reduce your effort rate. Apart from the financial slack you will get with reducing installments will improve your credit quality and make new credit applications (such as the above housing loan application) easier to approve.
Not everything is Roses!
Although the economic context is improving and the outlook in the financial sector is less gloomy, caution is needed. We emphasize the need to make a rigorous financial diagnosis and to be careful with credit applications through the internet . All to make good decisions and to increase the likelihood of having a good experience.
See Credit Simulators
There are several simulators of all types of credit on the internet. Just search and you will find several alternatives. Here we suggest our personal credit simulator and the consolidated credit simulator. If you want to have a better understanding of the potential to reduce the spread of your housing credit you can also count on us.