“Given the aging of the Portuguese population and the significant reduction in the income of borrowers in the transition from working life to a retirement situation, despite the reduction in expenses that may occur, the high concentration of loans in borrowers over 70 years of age in the term of the loan could pose a risk to the financial system,” says the BdP in the report.

According to the regulator, at the end of 2021, “almost two-thirds of the housing loan stock was associated with borrowers whose age at the end of the loan will be over 70 years and around a quarter was associated with borrowers whose age will be over 75 years”.

“Most of these borrowers took out their loans between 27 and 40 years of age”, the document also reads.

For the BdP, the granting of loans with very long maturities means that, very often, “the term of the loans exceeds the active life of the borrowers”.