How to renegotiate

Throughout the life of the loan, bank customers may wish to change one or more of the loan terms, such as the spread, the reference rate term, the interest rate regime (from variable to fixed or vice versa), the term for amortisation of the loan or the repayment modality itself.

The renegotiation of the terms of the agreement is only possible with an agreement between the bank customer and the credit institution.

Credit institutions may not charge any fee if the renegotiation is intended to:

  • Change the terms of the credit agreement;

  • Change the interest rate regime;

  • Change insurance company.

Credit institutions cannot make the loan renegotiation dependent on the acquisition of other financial products or services.

Credit institutions may not increase the burden with credit agreements for the acquisition, construction or maintenance of ownership rights over permanent owner-occupied housing, namely by increasing the stipulated spreads, if the renegotiation is due to:

  • Change of ownership of the agreement, due to divorce, legal separation of persons and property, dissolution of the unmarried partnership or death of one of the spouses, provided that the monthly instalment of the loan represents a debt service to income ratio of the household of the new owner of less than 55% or, where there are two or more dependents, of less than 60%:

    • Debt servie to income ratio, where the gross annual income of the household corresponds to the income earned during the previous calendar year, without deduction of any charges.

  • Lease of the property that guarantees the loan as a result of the unemployment of one of the members of the household or moving to a place of work more than 50 kilometres away of the owner or member of his or her household (other than a descendant) and that implies the change of residence:

    • The lease agreement must state that the property is mortgaged as collateral for a home loan agreement and that the lessee is obliged to deposit the rent amount in the account of the bank customer associated with the loan.