La filial lusa de CaixaBank apuesta por hipotecas crecientes

BPI, the Portuguese subsidiary of CaixaBank, is introducing a new mortgage product in the competitive market to attract younger customers. The innovative mortgage, with fixed interest rates and increasing monthly payments, begins with a lower monthly amount and increases by 1% annually. This differs from traditional fixed-rate mortgages where the payment remains constant throughout the loan term.

The initial interest rate stands at 5.8% TAE, which can decrease to 5.1% depending on the client's credit history. BPI has set strict solvency criteria for granting these loans to address the difficulties faced by young buyers due to the high property prices. This product aligns with BPI's strategy to strengthen its fixed-rate offerings and cater to families seeking financial predictability, thereby minimizing exposure to interest rate fluctuations.

Young buyers benefit from a public guarantee for those under 35 years old purchasing their primary residence. The mechanism allows financial institutions to finance up to 100% of the property value, with a state guarantee of up to 15%, for properties priced up to €450,000 and completed contracts by December 31st of this year. BPI ended June with a portfolio of €18 billion, a 11% increase from the previous year, and a 13.1% share of the total mortgage balance at the end of May.

The bank also gained exposure among younger buyers, accumulating €1.6 billion in guaranteed mortgages and around 8,000 contracts by June. BPI has further accelerated the new product launch, extending credit to one in every three young individuals who took out a mortgage in the first half of the year, compared to a 42% increase from the previous year.

Santander, another major player, has also intensified its mortgage production, financing over €2 billion in new credit in June, representing one in five loans granted in Portugal. Their mortgage portfolio reached €26.1 billion, up 8.4% year-over-year. As of early 2025, loans to borrowers under 35 years old account for 43% of their new mortgage production.

Millennium BCP, another significant market participant, holds a mortgage portfolio of €22.5 billion in Portugal. Bankinter maintains a smaller but notable position with a 5% share.