Mortgages Iberian Properties
Portugal is one of Europe's most exclusive holiday, retirement and leisure destinations. If interest rates fluctuate the repayments stay the same - only the term of the loan is affected. Taking out a Portuguese mortgage is becoming increasingly popular, however, especially as the market has become more developed and competitive. Banco Privado Atlântico - Europa offers a broad range of retail and corporate banking products and services.
Given this huge potential, and the current rate of growth, it is likely that property prices will continue to rise until reaching a par with established markets such as Spain and Portugal. Other definitions include forms of money such as deposits in bank current accounts, deposits in savings accounts with banks or other institutions, and term deposits, only repayable on a specified date.
Most mortgage lenders will not allow the sum of any existing debts and your new mortgage payments to exceed 35% of your monthly income after tax. However, for people planning on residing in Portugal, mortgages of 80% or even 90% of the purchase price could be available.
Iberian Properties, Spanish property experts have been working in the real estate and financial industries in Spain for over 20 years. Of course the plus side is that at times the interest rate may be lower than on a fixed rate mortgage. Purchase of a property in Portugal by non-resident citizens for use as a main residence and second home.
It allows mortgage-backed securities to be treated as the underlying loans, if the competent authorities consider that they are equivalent in the light of the credit risk. Knight Frank, the property consultancy, reports a Portuguese property price rise of 1% from the third quarter of 2014 to the third quarter of 2015, and experts are forecasting 2% gains for the average property over the next year.
The early redemption penalty for a variable rate acquisition mortgage is 0.50% as per the regulation of the Bank of Portugal. If it is a straight forward residential property purchase then most banks will make an offer, this is however often only 50% of the property purchase price or less, we offer up to 80% for non residents applying for loans in Portugal.
Despite much economic uncertainty in recent years, not to mention an unstable housing market, all the major Portuguese lenders continue to provide mortgages to suitable individuals, including overseas nationals, purchasing property in Portugal. The amount of housing loans that were granted this year is the highest since the beginning of the financial crisis.
If the valuation is at least the agreed purchase price and there are no legal issues relating to the property, the date and details regarding completion of the property purchase will be confirmed. The European Central Bank (ECB) set the rate of the Euro mortgages to a value that is at present lesser than the Bank of England base rate.
Quinta Finance mortgage advisors are UK qualified and through their well established relationships with all the major Portuguese lenders Property Management Vila Sol (Recommended Online site) they are able to assist you in sourcing the best available mortgage offer and help you navigate your way through the mortgage process.
Portuguese banks have strict affordability criteria which means that, including the mortgage you are applying for, the total of all debt service payments you have to make (inculding your UK mortgage and any other personal loans you have in the UK or elsewhere) cannot be more than 35% of your net income.
Unless significantly and recklessly over valued (always likely in Portugal!) we can be reassured that at least the Portuguese Bank lending its savers money has anchored it on something. No financial information is stored after the client accepts the Bank offer.
