How Did We Get Here
Since interest rates are low, financing the purchase of a property through a national bank loan could be an interesting option, especially because since 2010, Portuguese banks have not been lending as much as they are now. Having as goal the finding of advantageous solutions that make the purchase of a house at a time when access to bank credit is strongly limited, we sign partnerships with the main bank institutions so as to offer excellent business opportunities to all our clients.
Corporate and Commercial Finance (Anglo Portuguese) Ltd., can arrange mortgages on completed properties, properties under construction, properties being sold off plan, properties requiring stage payments during construction on selected developments, properties already owned.
In addition, the company is extremely experienced in arranging loans on Touristic property. Mortgages for acquisition purposes are offered by all the major Portuguese lenders to private individuals purchasing a property with a habitation license. To make things worse, the US taxpayers' exposure to the market is growing, not reducing; last year they bought or guaranteed three-quarters of all U.S. home loans.
To ensure our clients are well informed and in order to help you to make your decision, we have detailed important information that you should be aware of when buying and owning properties in Portugal. The maximum loan to value for Portuguese Mortgages for non-residents is between 70% to 80% of the purchase price of the property.
Since the housing market collapse of 2008, Portuguese lenders have become more conservative on the types of mortgage products they offer. By using one or more overseas property (plus possibly an existing UK property) 100% + mortgages may be available for any new property.
Current interest rates are excellent—in the range of 2.2% to 2.7%, depending on the length of the mortgage and whether the rate is fixed or variable. Mortgages4all has established a reputation as a market leader when it comes to providing innovative international mortgage products for Portugal and Europe.
Whilst many people will focus just on the pricing for a mortgage facility it is important to remember that there are other factors that need to be looked at. Some banks have a mandatory requirement for life insurance for example which can escalate the costs of a mortgage and require inconvenient medicals so for many non residents they are normally best avoided.
Simon Conn is an Introducer Appointed Representative of Cherry Mortgage & Finance Limited which is authorised and regulated by the Portugal Mortgages Financial Conduct Authority under number 730706 in respect of UK mortgage, insurance and consumer credit related activities only.
Through our agreements with major national and international banks we are able to secure loans and mortgages for private individuals and businesses below are some of the current mortgages on offer. Portugal has a sophisticated banking system with plenty of choice in local and international banks.
