I have a high spread on an older mortgage. Is it worth moving?

How do I know if my spread is high?

Compare your spread with current offers for your situation. The spread is the bank's margin, added to Euribor. On an older loan, it may be higher than what is offered today. In the terms FINOVA received in October 2026, one customer profile had a 0.70% spread, with linked products. Each bank sets the spread case by case.

Why does money seem to run out before the end of the month?

Your mortgage payment may be one of the causes, especially when Euribor rises. In October 2026, 6-month Euribor averaged 2.975%, according to Banco de Portugal. With a 1.5% spread, the rate is 4.475%. The problem is not always in one place: you may have a high spread, expensive insurance and products that do not suit you. So look at everything you pay because of the loan.

How much could the payment change?

In this example, the payment falls by about €183 a month for the first 2 years and by about €70 afterwards. You owe €200,000 with 30 years left. The example fixed rate is 2.85%. It then moves to 12-month Euribor, using the October 2026 average (3.239%, according to Banco de Portugal), plus 0.70%.

These are example figures, with the October 2026 Euribor averages staying the same. They are not a bank's offer and do not include insurance, an account or other products.

With the example mixed rate, the interest difference after 30 years would be about €27,800. Euribor will change, so this only shows the rough scale.

What do I need to calculate?

You need to compare the total cost, using the same amount and term. Follow this order:

1. Check your spread, Euribor, next review date and remaining term.
2. Work out the payment with the same term, so you do not confuse savings with more years of debt.
3. Add the insurance, account and products each bank requires.
4. Check the difference during the fixed rate and after it.
5. Confirm which costs a campaign covers and which you pay.
6. Compare the APR (TAEG) and total amount payable (MTIC), with the same amount and term.

How much does moving cost in this example?

Without a campaign, the example costs add up to €2,515: €1,000 in fees (0.5%), €40 in stamp duty on the fee, €300 for the valuation, €800 in bank fees and €375 for registration. At €183 a month, you win this back in about 14 months. With a campaign that covers these costs, the difference starts in the first month. Costs and campaigns are explained in the guide Can I transfer my mortgage to another bank?

Should I extend the term to lower the payment?

Only after doing the numbers, because more years can mean more interest. In the example, moving to 35 years would lower the initial payment to about €753, but you would have 5 more years of debt. Since 1 August 2026, Banco de Portugal has recommended a maximum term of 35 years for borrowers over 35. Each bank may also have an age limit for the end of the loan.

When is it not worth it, or not possible?

It may not be worth it when the balance is low, little time is left or products cancel out the difference. On a fixed rate, the fee can reach 2% of the amount repaid. It may also not be possible: the new bank reviews your income, affordability ratio and the value of the home. In FINOVA's experience, a common reason for refusal is having many loans or an affordability ratio above the recommended level. The decision is always the bank's.

Why do so many people put off these calculations?

In FINOVA's experience, there are two common reasons: you know the loan weighs on your budget but keep putting it off, or you think moving bank is too much work and may not pay off. Doing the numbers does not commit you to moving. It shows whether you have room in your budget and what is weighing on it.

Should I speak to my bank first?

Yes, asking your current bank for an offer helps you compare. The spread only changes if you both agree. Ask for the offer in writing and compare it with those from other banks.

Where FINOVA helps

We work through these numbers with you, using your contract, and ask several banks for offers. If it is not worth it, we tell you. See our mortgage transfer page or try a first calculation with the repayment calculator. Our fee is paid by the bank.

Sources

• Banco de Portugal — Macroprudential Recommendation no. 1/2026 (in Portuguese)
• Banco de Portugal — How to repay and transfer (in Portuguese)
• Banco de Portugal, BPstat — 6-month Euribor, monthly average (in Portuguese)
• Banco de Portugal, BPstat — 1-year Euribor, monthly average (in Portuguese)

Sources checked on 4 November 2026.