Portugal Impact On Loans

Portugal is one of Europe's most exclusive holiday, retirement and leisure destinations. 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.

In view of the changing market place the Managing Director of Corporate and Commercial Finance (Anglo Portuguese) Ltd., works closely with a Portuguese fully authorised Financial Intermediary authorised by The Bank of Portugal who in the past was Managing Director of lending for a well-known Portuguese Bank.

One of the key problems is that the financial institutions will not release what their real position is. The same thing is true of situations here in the US. Banks are allowed to carry items on their balance sheets that do NOT have to have the true value posted.

In 2011 over hanging economic pressures will continue to loom over the UK. November 2010 saw inflation rise 3.3%, which is well above the Bank of England's target of 2%. Obviously the more this increases the more it affects our standard of living and if it hits 4% which is possible, the government will have to seriously think about increasing interest rates.

Although things can often change quite dramatically over the period of a mortgage, it is worthwhile noting that Interests rates on the European Continent are typically lower than in the UK. The problem is that the low interest rates are starting to attract a lot of buy-to-let investors, who are finding that the UK market has begun to mature.

Now, however, sellers are having to agree prices which are in line with bank valuations, rather than market demand, meaning that, according to local listing site Meravista, which has 24,000 properties available, Portuguese property is now up to 32% cheaper than the UK.

If you require financing for a property purchase in Portugal or if you're interested in comparing your current loan conditions, speak to us as we offer a free and independent finance solution service that is determined to find you the best mortgage conditions on the market.

The biggest banks in the country of Portugal have halted all repayment of loans worth 19 billion euros for six months, this is to help those people that have been greatly affected by the Corona Pandemic in the country and if extended further this will lead to a rise in the number of bad debts said the CEO.

The evolution in loans to customers reflects mainly the performance of the activity in Portugal, which decreased 2.5% from 30 September 2009, influenced by the drop in loans to companies, despite de rise in loans to individuals, supported by the growth of 1.9% in mortgage loans.

Because residency can be triggered by being in Portugal for more than 183 days in a given calendar year, or by owning a property which the government considers a ‘habitual' residence, those seeking to invest in residential real estate in Portugal may wish to seek the advice of Portuguese tax expert for proper tax planning.

If you do not borrow the money in Euros, you may need to pay up to 5% to 10% in bank and conversion fees before you can use it for purchasing western algarve property for sale a property in Portugal Currency fluctuations can work for or against you - the cost of converting currency will always be against you.

Transfer a loan to another bank : this kind of loan, which in Portuguese is called Transferência de Crédito Habitação (the page is in Portuguese), has the purpose of transferring a current loan to another bank, where you may pay less in interest rates.