Portugal Impact On Loans

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.

There are many Banks and companies ready to help you with the Mortgage process in Portugal and you can even start the process today if you plan to visit us soon. Portugal offers a vast range of property types that appeal to different types of buyer. Many Portuguese mortgage providers and banks have online mortgage calculators on their websites.

Portugal is an attractive option for those looking to buy a property overseas, not just in terms of location but also for ease of purchase and getting a mortgage. If you plan on running a business from the property yourself, most commercial mortgages in Portugal will require a viable business plan, not to mention proof of your experience in a relevant business.

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.

This is complicated by the fact that banks lending in Portugal do not always offer the same conditions to clients, even if they have similar profiles. A better option is to use a mortgage broker, who is used to dealing with this type of transaction, knows exactly which banks and branches to ask, and can probably secure you a better rate.

Valuation report - if the valuation is no lower than the agreed purchase price and the property has no legal issues, the completion arrangements can be made. So a rise in inflation and interest rates will put more pressure on borrowers using tracker mortgages and make it less desirable for investors to borrow if strict lending policies are maintained.

Most banks finance 100% of the construction cost and the funds will be released in various stages throughout the building process. The interest rates of a Portuguese variable rate mortgage are linked to either the three or six month European Central Bank - Euribor - rate and increased by the margin (profit) that the bank applies.

Persons who are not residents of Portugal need to pay taxes only on income earned at that country, for instance, interest paid on deposits or savings in Portuguese banks. Mortgage interest Rates in Portugal A couple of banks in France say they'll do mortgages for nonresidents, but the requirements are so strict that precious few non-France residents would qualify.

Now, however, sellers are having to agree prices which are in line with bank valuations, rather than market demand, meaning that, according to local listing site Meravista, which has 24,000 properties available, Portuguese property is now up to 32% cheaper than the UK.