Home Mortgages In Portugal

In this tough financial climate we continue to find ourselves, many are left with their assets floundering in the wind, so to speak! Financial institutions have several duties to inform, including, on one hand, to publicize and advertise on their websites and through the regular contacts with clients, the measures provided for in this Decree-Law (including the terms and deadlines to adhere to the moratorium), and on the other hand, to provide full knowledge of all measures provided for in this Decree-Law prior to the formalisation of any credit agreement whenever the client is a beneficiary entity.

As mentioned before the rates can be lower than in the UK, for example in France, Spain, Italy and Portugal the rates can start as low as 3.5%. In the less established markets like Bulgaria and other eastern European countries the rates can start at around 6%, whereas countries like Greece and Cyprus roughly fall half way between the two at 5%. The borrowing criteria are typically tougher than in the UK and you should expect to be able to borrow only around 70-80% of the property's value.

Cold and bleak translates into: GDP steady or falling (recession); high interest rates on public and private debt; inflation rising; shortage of credit for businesses and private mortgages; tax rates going up; rising unemployment; stock market prices falling ('bear' market).

When you combine the three influencing factors of Government interference on basically dictating who is creditworthy or not, depository institutions packaging unregulated risky subprime bonds, and record low interest rates, speculative fervor will occur and bubbles will be created in a capitalist society.

Firstly the Euribor (Euro Interbank Offered Rate) is historically lower than the LIBOR (London interbank offered rate) which means the cost of borrowing for a mortgage in Portugal is normally less than the cost applicable to an equivalent UK mortgage.

Simon Conn is an Introducer Appointed Representative of Cherry Mortgage & Finance Limited which is authorised and regulated by the Financial Conduct Authority under number 730706 in respect of UK mortgage, insurance and consumer credit related activities only.

For example, the change in the definition of eminent domain from taking personal property - for public use - to the new definition - for public good - has already resulted in private and commercial property being taken at distressed market values and given to other individuals that promised a higher tax base to the governing authority based on their position that the additional tax revenue was for the public good.

The rule of thumb is, the more established the market, then the easier it is, so in emerging markets like Greece, Bulgaria, Poland, The Caribbean and Israel, you can get a mortgage - but the rates will be considerably higher (see below), the amount they will lend is less and they also have stricter borrowing terms.

As of 2015В we extended ourВ services and included Portugal in our offering.В We have adapted our independent service to the needs of property buyers such as you and we continue to negotiate with the banks to provide you with preferential deals both in terms of interest rates and speed of completion.

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 current levels of residential loans are bolstered by the historically low level of the indexes used in loan contracts - which Mortgage Portugal Property remain negative - but also by diminishing spreads charged by banks, which are aggressively increasing liquidity in the economy.

Interest rates are usually variable, based on Euribor plus a percentage (12-month Euribor is currently -0.16%), but up to 20 year fixed rates are available. Their team of specialists is based in the Algarve and has a combined experience of over 30 years in the financing and mortgage markets in Switzerland, UK and Portugal.