The Government stresses that the credit indices are in “normal patterns”, between 2% and 3%, but recognizes that the speed with which interest rates have risen in recent months will force action to be taken. Among these measures, which the Government will require banks to comply with, are the suspension of early repayment installments throughout 2023 and, also, the extension of terms but with the right to set back.
He was Secretary of State for Finance. Joao Nuno Mendes who, in a parliamentary debate this Thursday, criticized the proposals presented by other parties and asked that “people do not have the illusion that we can, through administrative or legislative means, put an end to interest rate rises.”
Beginning by ruling out the possibility of launching new moratoriums -especially since there is no “European framework” that allows them-, João Nuno Mendes asked that “We have no tricks or illusions to solve this reality“. However, the rapid rise in interest rates is a problem that “the Government will address in seat of rental agreementby budget path it’s a specific diploma aimed at the banking sector“.
The Government agrees that the evolution of the indices has been extraordinarily fast and this causes a significant change that forces us to act also in the field of the banking system”, said João Nuno Mendes.
If no details were given on the first two points, on the third the Secretary of State revealed some of the new measures.
“We are going to propose legislation in the sense that there is a duty imposed on banks to face the significant increase in the rate of effort that a new proposal can present” for housing credit, that is, between the bank and the client .
What can be? “It could be a credit refinance and a new one. It could be him extension of the amortization period – increase of five years, for example – but we also want to create an educational and customer protection mechanism”. What, specifically? “Within a certain period, the customer They have the right to return to the original term.because “increasing the term the installment is reduced but the client will always pay more interest”.
The official indicated, regarding this course, that “there may also be a change in the type of rate applicable to credits or the consolidation of credits without increasing interest rates.”
João Nuno Mendes indicated another measure that is being planned: the temporary suspension in 2023 of the early repayment commissionso that the existence of this commission is not an obstacle to renegotiation and, for example, to transfer from one bank to another.
Banks usually charge a commission of 0.5% for early repayment in the case of loans at a variable rate (2%, as a general rule, at a fixed rate). Throughout 2023, banks may be prohibited from charging this fee, which could be an incentive for someone to convert savings into credit repayments and thus mitigate the impact of rising interest rates .
Source: Observadora
