Portuguese prime minister António Costa has unveiled an interest rate subsidy for housing loans for the remainder of the year, with the possibility of renewal.

The subsidy will cover families with incomes up to the sixth income bracket of the IRS, with a 35% effort rate, Costa stated, adding it also covers construction on their permanent home and credits for acquisition.

In addition, the subsidy covers credits up to a maximum value of €250,000, with the support paid retroactively to January of this year with an annual limit of €720.

The prime minister went on to say that the measure will differ according to income and “will be in force until the end of the year and may be renewed if interest rates are not back down by then.”

Households with incomes up to and including the fourth IRS bracket will receive 75% support, and families in the fifth and sixth brackets will receive 50% support, Euractiv reports. This amount will take into consideration the difference between the Euribor rate contracted and the current rate.

“This support exists whenever there has been an increase of more than 3% in relation to the value of the index on the date of the signing of the contract”, and the support (of 50% or 75% depending on the case) will be applied over this difference, the prime minister stated.

The public consultation of the section of the so-called ‘Mais Habitação’, providing support to tenants and people with housing credit, came to an end on 13th March.

Whereas on 24th March, the public consultation of the remaining programme – including steps to be sent to parliament - will end.

The initiatives included in the ‘Mais Habitação’ scheme will cost around €900 million, the Euractiv report adds, financed from the state budget.