Getting An International Mortgage
Mortgage interest rates in the Eurozone are on the rise, putting Britons who have borrowed to buy holiday homes in Spain under increasing financial pressure. 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.
Our mortgage terms for buying in Portugal and Europe are second to none, so Whether you're looking to find a mortgage for your dream Algarve villa or even change mortgage on your Lisbon apartment, all you need to do is fill in a simple online mortgage application and we'll forward it to the best mortgage providers in Portugal.
The steeper price of land plots and the superior quality of the properties in Portugal has led to the property costs becoming higher than that in Algarve Property Facebook Spain. In April 2016 Bankinter closed the purchase of Barclays' retail business in Portugal thus forming Bankinter, SA - Sucursal em Portugal.
Buying property in Portugal is a regulated activity. Today's mortgage market is considerably less favourable to new customers than it was before the banking collapse and fall in interest rates. In many cases this can reduce that extra interest margin quite significantly, with some brokers able to find Portugal mortgage deals as low as the Euribor rate plus 1.00%.
You will also need to prove to the mortgage lender in Portugal that the funds for the property purchase - at least 30 per cent deposit plus up to 15 per cent property purchase fees - are available. The process of financing and buying a property in Portugal can seem complicated, which is why talking to a specialist can help.
The current levels of residential loans are bolstered by the historically low level of the indexes used in loan contracts - which remain negative - but also by diminishing spreads charged by banks, which are aggressively increasing liquidity in the economy.
You can get a reasonably competitive mortgage in the US and most of the established European overseas property markets like Portugal, Spain, France, Switzerland and Italy. ItвЂs possible to secure mortgages up to 80% of the property purchase price (when you are a Portuguese taxpayer) with rates from Euribor + 1.5% or fixed rates from 2.25%.
Our solution: a bank that would pre-approve their personal financial situation and keep the process alive until completion for at least one year. Your Portuguese home could be at risk if you do not keep up repayments on a mortgage secured on it. Be sure you understand the repayments and can afford them before entering into any credit agreement.
Once you've found a property in the Algarve to buy then the mortgage approval process can be completed fairly quickly. There's no such thing as a ‘buy-to-let mortgage' in Portugal, banks do not differentiate their offering. Fiscal residents in Portugal (i.e., those who pay tax there) may be able to borrow up to 85-90% of the sale price in some cases.
