The Bank of Portugal published updated statistics on Portugal’s State personal guarantee scheme for mortgages used to buy an owner-occupied permanent home, showing that State-guaranteed lending represented a large share of young borrowers’ new housing credit in 2025. In the first full year of the scheme, 25,500 State-guaranteed mortgage contracts were signed for a total of EUR 5.1bn, accounting for 42.7% of the number of contracts and 45.0% of the value contracted by borrowers aged up to 35 in 2025. Across total system-wide lending for the same purpose, State-guaranteed contracts represented 23.5% of the number of contracts and 26.8% of the total amount granted in 2025. In December 2025, 2,600 State-guaranteed contracts totalled EUR 533m, representing 49.1% of the number and 50.9% of the value of young borrowers’ contracts for that purpose, with month-on-month increases of 2.0% in number and 1.3% in amount. By end-December 2025, EUR 701m had been made available by the State under the regime, with 59.2% used; regionally, more than half of young borrowers’ contracts used the guarantee in Alentejo, Beira Baixa, Lezíria do Tejo, Terras de Trás-os-Montes and Beiras e Serra da Estrela, versus about one third in Greater Lisbon and the Autonomous Region of Madeira. The Bank of Portugal indicated the next statistical update is scheduled for 30 April 2026. The release also reiterates key scheme parameters, including a State guarantee covering up to 15% of the property transaction value (supporting bank financing of 85% to 100% up to a property price cap of EUR 450,000), a maximum duration of 10 years, and applicability to contracts concluded up to 31 December 2026.

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