Euribor rates

Portuguese variable rate mortgages are tethered to either the 3-month or 6-month Euribor rate, augmented by the bank's margin (spread). Euribor, determined daily by a consortium of European banks, serves as a benchmark for interbank lending rates (akin to the London Interbank Offered Rate, LIBOR, used in the UK). Accessible via www.euribor-rates.eu/, these rates dictate the cost at which European banks lend to one another.

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Under a three-month Euribor rate scenario, your mortgage repayments remain fixed for three months, based on the prevailing rate on the day of signing the mortgage deed. Subsequently, every three months, the bank adjusts your mortgage based on the average rate of the three-month Euribor from the prior period.

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The interest rate margin (spread) is determined upon mortgage approval and remains fixed for the loan's duration.