Is it worth moving your mortgage to another bank in Portugal? Three options, with the numbers
When her fixed rate ended, a client's monthly repayment was set to rise by 69 euros. We compared three options using bank offers from August 2026: stay put, accept her bank's offer, or remortgage with another lender. Here are the numbers, the costs and when it does not pay off.
In this article
- 01How does remortgaging work in Portugal?
- 02Why was her repayment going up by 69 euros a month?
- 03What were her options?
- 04How much would she pay each month?
- 05How much did it cost to move?
- 06Is the bank's insurance package worth it?
- 07When is moving not worth it?
- 08Should you accept your bank's offer or look at the market?
- 09What to do before your rate review
- 10Frequently asked questions
- 11Sources
When the fixed-rate period on a mortgage ends, your monthly repayment can jump from one month to the next. That is what happened to a client who asked FINOVA for help in August 2026.
This case compares her three options: stay as she was, accept her bank's offer, or move the mortgage to another bank. We changed the figures to protect her identity. The rates and conditions are the ones the banks offered in August 2026. They show how the numbers work; they are not current offers.
How does remortgaging work in Portugal?
Remortgaging with another lender means a new bank pays off your current loan and takes it over. The house is still the guarantee. What changes is the interest rate, the bank's margin and the insurance.
Most mortgages in Portugal are on a variable or mixed rate. A mixed rate is fixed for the first years and variable after that.
Why was her repayment going up by 69 euros a month?
Because her fixed-rate period had ended and the loan moved to Euribor plus the spread. At the September 2026 review, the bank used 12-month Euribor at 2.855%, the July 2026 average, plus a 0.75% spread.
- Loan balance — 160,000 euros, with 33 years left to pay.
- Mixed rate — fixed for the first years, variable after that. The fixed part had already ended.
- Monthly repayment — going from about 622 euros to 691 euros.
- Life insurance (seguro de vida) — about 35.50 euros a month, paid to her current bank.
She did not know which month her fixed rate ended. She found out from the bank's simulation of the new repayment. This happens a lot.
What were her options?
She had three options. FINOVA asked three banks for offers in August 2026, including her current bank.
- Stay as she was — 12-month Euribor plus 0.75% from the review date.
- Accept her current bank's offer — a 3.15% fixed rate for 2 years, then 12-month Euribor plus 0.70%.
- Move to another bank — a 2.60% fixed rate for 2 years, with life and buildings insurance from that bank. Then 12-month Euribor plus 0.70%.
How much would she pay each month?
Moving was the cheapest option: 649 euros a month for the first 2 years, against 697 euros with her bank's offer and 738 euros if she did nothing. The figures include the repayment, insurance and the account fee.
| Per month, first 2 years | Stay | Current bank's offer | Move |
|---|---|---|---|
| Repayment | 691 € | 650 € | 602 € |
| Life insurance | 35.50 € | 35.50 € | 31.20 € |
| Buildings insurance | 10.80 € | 10.80 € | 10.80 € |
| Bank account fee | — | — | 5 € |
| Total | 738 € | 697 € | 649 € |
FINOVA estimates for 160,000 euros over 396 months, with 12-month Euribor at 2.855% (July 2026 average). Buildings insurance (seguro multirriscos) is assumed at 130 euros a year in every option.
Over 2 years, moving would save about 2,120 euros compared with doing nothing, and about 1,135 euros compared with her bank's offer. In interest alone, she would pay 8,165 euros over 2 years, against 9,910 euros and 11,357 euros.
After 2 years, both offers have the same 0.70% spread. The repayment would be about 685 euros and 682 euros. Most of the difference comes during the fixed-rate period.
How much did it cost to move?
In this case, the new bank paid the costs of moving, as part of a remortgage campaign running in August 2026.
| Cost | Amount | Who paid |
|---|---|---|
| Early repayment fee (0.5%) | 800 € plus stamp duty | New bank |
| Application, valuation and contract fees | Included in the campaign | New bank |
The early repayment fee is what your current bank can charge when you pay off the loan early. According to Banco de Portugal, the country's central bank, the maximum is 0.5% of the amount repaid on a variable rate and 2% on a fixed rate.
Her loan was already on a variable rate, so the 0.5% limit applied. If she had paid this fee herself, she would get it back in about 9 months compared with doing nothing, or 17 months compared with her bank's offer.
Is the bank's insurance package worth it?
Only if you already need that insurance. Here, the package lowered the fixed rate from 2.80% to 2.60%, about 17 euros a month off the repayment, and she needed both policies anyway. The rules on where you can take out the insurance are in our guide "Am I required to keep insurance with the bank where I got the loan?"
A lower rate with insurance can cost you more.
Before you accept a rate that comes with insurance, compare the total monthly cost: repayment, insurance and account fee. Life insurance covers the people on the loan and buildings insurance covers the house; banks usually require both.
When is moving not worth it?
When the balance is small or when there are only a few years left. Here are two examples with the rates from this case, with the costs paid by the client:
| Situation | Repayment goes down by | By the end of the loan |
|---|---|---|
| 40,000 € balance, 30 years left, 1,500 € costs | 22 € a month | About 190 € worse off |
| 60,000 € balance, 8 years left, 1,500 € costs | 27 € a month | About 290 € worse off |
FINOVA estimates, using the rates from this case. They compare the interest paid until the end of the loan with the cost of moving, without insurance or account fees.
Timing matters too. If she had moved while still on the fixed rate, the early repayment fee could have been up to 2% of the amount repaid: 3,200 euros instead of 800.
Should you accept your bank's offer or look at the market?
Look at the market. In this case, her bank lowered the spread from 0.75% to 0.70%, but another bank's campaign had a lower fixed rate.
“Your current bank's offer is where the conversation starts, not where it ends. You only know if it is good when you compare it with the market. And the best time to do that is before your rate review date.”
Euribor has gone up since this case.
12-month Euribor averaged 3.239% in October 2026, against 2.855% in July 2026. Banks also change their fixed-rate campaigns. This case shows how to think it through; your own loan needs numbers from today.
What to do before your rate review
- Check when your fixed rate ends. It is in your contract and on your loan statement.
- Ask your bank for its offer in writing. With the rate, the spread and how long each condition lasts.
- Compare the total monthly cost. Repayment, insurance and account fee, not just the rate.
- Check who pays the fee and the moving costs. And whether that condition is permanent or only part of a campaign.
- Give your bank notice in time. Paying off the full loan needs at least 10 working days' notice, according to Banco de Portugal.
The general costs and timings of remortgaging are explained on our mortgage transfer page and in our guide "Can I transfer my mortgage to another bank?"
Frequently asked questions
Do I need to change my bank account and direct debits?
Usually the new bank asks for an account to pay the mortgage from, and some campaigns ask for your salary to be paid into it. You can move your direct debits and keep your old account if you want.
Can the new bank say no?
Yes. The new bank checks again whether you can afford the loan, as it would for a new mortgage. It follows the Banco de Portugal recommendation on how much of your income can go to loan repayments.
When is the best time to think about moving?
Before your fixed-rate period ends, or before your yearly rate review. Once the loan is on a variable rate, the maximum early repayment fee goes down from 2% to 0.5% of the amount repaid.
How much does it cost to move your mortgage to another bank?
Your current bank can charge an early repayment fee of up to 0.5% of the amount repaid on a variable rate, and up to 2% on a fixed rate. Stamp duty (imposto do selo) of 4% is added to the fee. The new loan has costs of its own, such as the property valuation, the contract and registration fees. Some banks pay these as part of a campaign.
Is the early repayment fee on variable rates going away?
It is not law yet. A bill to scrap it passed a first vote in the Portuguese parliament on 30 September 2026 and still has to be voted on again. Until then, banks can charge up to 0.5%.
There is no single answer for everyone. Whether moving pays off depends on your balance, the years left, the type of rate, the insurance and the campaigns available at the time.
FINOVA compares offers from several banks and reviews each case individually. FINOVA's fee is paid by the bank, after completion. The mortgage process itself always has costs of its own: taxes, the property valuation and registration fees.
Sources
Early repayment fee limits and the 10 working days' notice: Banco de Portugal — Bank Customer Portal.
Stamp duty (imposto do selo) of 4% on fees, item 17.3.4: Stamp Duty General Table, Portal das Finanças (in Portuguese).
Affordability checks: Banco de Portugal — Macroprudential Recommendation no. 1/2026, which is the set of rules banks follow when they study a loan application, applying from 1 August 2026 (in Portuguese).
Monthly averages of 12-month Euribor (July and October 2026), as published by EMMI and compiled by global-rates.com.
First approval in parliament of the bill to scrap the fee on variable-rate loans: idealista/news (30 September 2026, in Portuguese).
Bank conditions: offers made to the client in August 2026, banks not named. Case figures changed to protect the client's identity; calculations by FINOVA.
