The bank Banco de Portugal (Bank of Portugal) claims that local banks will be lifting some of the restrictions placed on home mortgages in the second quarter of 2016 and that the number of loans is set to increase. Lending criteria for non-financial private sector borrowers remained stable in Q1 2016, but at least two banks have eased conditions since then and the Bank of Portugal believes this will result in increased demand for home loans. It’s expected that this would improve the prognosis of the residential sector in combination with low interest rates and rising consumer confidence.
