Mortgages With Santander Totta
Obtaining a mortgage in Portugal in Euros will probably give you the best interest rate for your mortgage, however it is often easier to raise the money in the UK (or your home country) and then purchase the Portuguese property outright. With banks in Portugal now adopting greater caution following the recent Portugal property crash, most lenders now only offer home loans on a repayment basis - including both interest and payment towards the capital loan amount - with borrowing rates starting from around 6%. However, there are still some interest-only deals available.
That's part of the reason why we're regularly rated as five stars on Feefo, and why Portugal mortgages are a popular topic with our customers. These types of Portuguese mortgage are not offered by the banks to High St customers and are only available to professional mortgage brokers in Portugal.
In fact in some cases you can get a better deal from another bank, when buying bank owned properties. The competitive UK mortgage market provides several advantageous Villas For Sale in the Algarve (https://www.google.co.uk/maps/place/Ideal+Homes+International/@37.084025,-8.084615,15z/data=!4m2!3m1!1s0x0:0xd3a27d867322db59?sa=X&ved=2ahUKEwit5uy7j7HqAhXZ8uAKHUCDAiMQ_BIwCnoECBIQCA) deals on sterling loans. However, many banks don't lend for international properties or restrict their lending to particular types of property or locations.
This means they will take your total borrowing commitments including any existing home mortgage, personal loans etc plus the new mortgage payment and calculate the total as a percentage of your Net monthly income. Notaries and Registration fees are fixed although they could vary according to the type, number or complexity of acts to be done or registered, whereas Purchase Transfer Tax (IMT) and Stamp Duty are based on the declared price of the property.
Laid out in its simplest terms, they'll use an outgoings-to-income calculation to figure this out, which means your total monthly income, subtracted the monthly outgoings (including the new mortgage payment). They have access to international lenders who offer funding for home purchase loans and re-mortgage financing.
First-time Buyers accessibility is expected to decline over the next two years, as house prices grow faster than the daily household income available to these borrowers," Fitch predicts. To purchase a property in Portugal you will need a Portuguese fiscal number - obtainable through your Lawyer.
The maximum mortgage term available is 30 years and the maximum age for getting a mortgage in Portugal is 80 years. Mortgages in Portugal 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.
We work with many Portuguese banks to offer you the best customer service both at home and abroad to keep your financial monitoring as simple as possible. is an information website - all of our content is written by qualified advisors from the front line, for the sole purpose of offering great, relevant, and up to date information on all things mortgages.
Compulsory products are usually a bank account with the bank offering the mortgage and home insurance with that bank's chosen insurer. The SWAP rate is then increased by the interest rate margin (spread) which is also fixed for the life of the mortgage. Although the vast majority of mortgages are variable rate in Portugal, fixed rates are becoming more popular, banks can offer fixed rates for various time frames, for example 2 years, 5 years and even 10 years.
In the case of the three month Euribor rate, your mortgage repayments will be fixed for three months at the prevailing rate at the day you sign the mortgage deed, thereafter, every three months later the bank will apply the average rate of the three month Euribor rate to your mortgage from the previous month.
