Portugal Realty
With such a range of mortgage products available, we can help you to choose the best product to suit your individual circumstances whether that be a repayment, variable rate, fixed rate or hybrid mortgage. That will need to be paid back somehow - or more likely written off at taxpayers expense - before northern Eurozone Banks allow any kind of shared risk Banking system. For example, a 20 year Portuguese mortgage is available for someone aged 60 at the time of purchase.
The Bank will satisfy itself that an applicant is in a financial position to be able to meet the conditions of the loan which will be based on affordability". Currently the Banks affordability criteria is calculated on 30% of the client's income (total earnings after tax must service the new borrowing and any existing borrowing elsewhere).
Portuguese banks are still offering loans but the spread" (which is what the bank charges its customers over and above the rate at which they lend to each other) has become very high and the credit checks and lending criteria have changed as well. Lending criteria - this usually depends on your financial position which is determined by your current income earnings, debts and employment history.
We have a 98% approval rate and our service comes with a money-back guarantee if the terms offered cannot be achieved. As a Portuguese Resident, you may borrow up to 90% (75% as a non-resident) of the lower of the property price and the property valuation. Fixed rate mortgages are available from some lenders and the fixed rate period can range from 1-30 years.
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.
Barclays, for instance, lends for Portuguese properties as well as to purchasers of property in France, Spain and Italy. With so many developers offering new and off-plan property, single houses sell far less quickly and those interested in second hand homes are usually bargain hunting at the lower end of the market.
Alternatively, fixed rates are available at 4.1% for up to 5 years based on loan to value ratios of up to 70%. Whether you are looking to own a home or a business in the sun, the mortgage requirements in Portugal are similar to the process in France or Spain - and the property prices can be competitive.
Mortgage lenders in Portugal have generally been averse to following the negative Euribor rate, with interest rates for prime borrowers hovering between 3.25 percent and 5.25 percent, depending on the specifics of the loan, although lower mortgage rates may be offered in certain situations.
The maximum mortgage term available is 30 years and the maximum age for getting a mortgage in Portugal is 80 years. Property Management Algarve (have a peek at this web-site) are available up to 80% loan to value (LTV) with a few banks, with the majority at 75% LTV. It's sensible to get the mortgage process started as early as possible, even if you've not begun to look at properties.
