In an interview with CNN Portugal, against the backdrop of April inflation rising to 3.4% (driven by fuel prices), Sofia Cordeiro, mortgage credit intermediation specialist, stressed that most households who signed mortgages in recent years are shielded from the immediate impact of rising interest rates. The reason lies in the dominant contracting profile: fixed or mixed rate, rather than pure variable.
What she said on CNN Portugal
Invited to comment on April inflation accelerating to 3.4%, driven mainly by fuel, Sofia Cordeiro shifted the focus to the real impact on households with mortgages. According to her, most people who signed mortgages in recent years are shielded from the rate hikes because they chose fixed or mixed rates for the early years of the contract.
Why most are shielded
Between 2023 and 2025, with Euribor already at elevated levels, banks frequently offered fixed rates for the early years or mixed rates. This contracting profile immunises the instalment against short-term benchmark moves: the payment only changes at the end of the fixed period or on the contract reset date. Even so, it is important to read the ESIS to identify when the contract switches to variable and the applicable spread.
What to check before any decision
Before renegotiating, transferring or simply feeling reassured, check three items in your ESIS: the rate regime in force, the next reset date and the benchmark used, plus the contracted spread. The analysis should include APRC, total amount payable, remaining term, insurance and transaction costs. A stable instalment today does not mean an unchanged one tomorrow.