Bank of Portugal releases August data on the state guarantee scheme for under-35 primary residence mortgages

The Bank of Portugal published updated BPstat information on the state personal guarantee regime for home purchase loans, reporting that individuals signed EUR 416 million of primary-residence mortgage contracts backed by the guarantee in August across 2,100 contracts. These guaranteed contracts accounted for 45.5% of the number of contracts and 47.0% of the amount contracted by borrowers aged up to 35 for the same purpose, with the number of guaranteed contracts and the amount falling 14.7% and 12.9% respectively versus the prior month. Across the first eight months of 2025, 15,300 guaranteed contracts were signed for a total of EUR 3.0 billion, representing 39.6% of the number of contracts and 41.9% of the amount contracted by under-35s. Relative to total primary-residence purchase credit granted by the financial system up to August, guaranteed contracts represented 21.7% of contracts and 24.8% of total lending, while 37.5% (EUR 407 million) of the total guarantee envelope allocated by the State had been used by end-August. The release also reiterates the scheme’s key parameters for eligible borrowers up to 35, including coverage of up to 15% of the property transaction value (supporting financing of 85% to 100%) for transactions up to EUR 450,000, with a maximum duration of 10 years and applicability to contracts signed until 31 December 2026. The next monthly update is scheduled for 29 October 2025.