Banco de Portugal is preparing to tighten mortgage lending rules by lowering the maximum debt-service ratio for households. Families are currently allowed to allocate up to 50% of their net monthly income to debt repayments, but the regulator is considering reducing the cap by 5 to 10 percentage points. For a household earning €2,000 per month, the maximum repayment would fall from €1,000 to €800. The move is driven by rapid growth in lending volumes, approaching the peaks seen in 2006 and 2007, as well as concerns over a potential rise in interest rates. The new rules could take effect this summer, with details due to be presented to banks next week ahead of approval by the ECB. Material taken from https://t.me/s/lepta