Portuguese Property Sales Down

NOVO BANCO has agreements established with several property developers, enabling you to access special terms for loans, spread and fees. Interest will be charged at a margin over the Bank's mortgage loan rate applicable to the currency borrowed. Following the recent property crash in Portugal, some banks are understandably a little cautious about offering home loans. Rates early in 2016 started at 3.3% for a variable rate of up to 30% loan-to-value (LTV), 3.4% for a variable rate of up to 60% LTV, and 4.25% for a five-year fixed rate of up to 80% LTV.

Depending on circumstances, we may or may not be able to offer you the exact loan amount and interest rate requested. The Financial Services Authority does not regulate loans secured on overseas properties. Once the property and mortgage deeds are signed in front of the Portuguese Notary and all the associated fees and taxes have been paid you become the official new owner of the property.

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 Western Algarve Property For Sale 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.

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 interest rates go down to 4.5%, the price might rise to $115. If you're considering buying a UK property, we can offer you support to help you make the right decision about your mortgage. If you're planning on building your own property in Portugal, there's also the option for a construction mortgage.

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.

Before you begin the process of applying for mortgage in Portugal it's advisable to seek the advice of a mortgage broker who can offer an initial no-obligation assessment of whether it's likely you'll be approved for Portuguese mortgage and under what conditions.

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.

A Part and Part mortgage allows you to split your home loan and combine the security of a fixed rate mortgage with the flexibility of a tracker mortgage. In the year to October 2016, property prices in all of Portugal's 24 urban areas showed growth, and the Lisbon metropolitan grew around 2.6% year on year.