Buying Property In Portugal As A Foreigner

Property sales in Mozambique are somewhat of a mixed bag in terms of the amount of properties being purchased and those who can afford them. A mortgage loan is secured (or backed) by the collateral of specified real estate property. If you are buying a property for commercial use, such as a restaurant or a shop for example, the maximum mortgage is 50% of the price (or valuation if lower). This document shows who owns the property, who has rights to the property and if there are any charges, mortgages or incumbrances registered against the property.

The banks offer loan terms of up to 50 years for residents and 30 years for non-residents. When you purchase an off-plan property in Portugal, one of the benefits is that only a small proportion of the buying costs are payable at the start. There's no such thing as a buy-to-let mortgage in Portugal, so that rental income won't be taken into account in assessing your loan, only your own income.

Most mortgages can be arranged with terms of 25 years (for non-residents) and 30 years (for residents), usually up to a maximum age of 75. For non-residents, some banks have a maximum 20 year term. If you are buying a property for commercial use, such as a restaurant or a shop, for example, the maximum mortgage is 50% of the price (or valuation if lower).

The process is fairly straight forward, all the paper work much be collated and submitted to the bank(s), including the property documentation. Overseas Mortgages Real Estate Financing in Portugal are not regulated by the Financial Conduct Authority, nor are they protected by the Financial Ombudsman Service or Financial Services Compensation Scheme.

Financing example for a Variable Rate Mortgage, for a total amount of €100,000.00, a purchase price of €150,000.00 and a mortgage term of 360 months, corresponding to 360 monthly repayments of €339.63. Loan indexed to Euribor for 6 months (-0.365%), in force in April 2020, plus a spread of 1.750%, resulting in a variable Nominal Annual Percentage Rate of 1.385%, rounded to the thousandth.

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.

In addition to Italy, new mortgage loans on the periphery of the eurozone will record double-digit increases. Never forget these Portuguese Banks lending to the Portuguese sovereign nation when buying their own Government debt. Tracker rate mortgages are linked to the Bank of England base rate.

After the fixed rate period expires, the mortgage will automatically convert into a variable rate mortgage (unless the rate is fixed for the entire loan period). Under Portuguese law the pre-payment penalty from all banks is fixed at 0.5% for variable rate loans and 2% for fixed rate.

However, buying a property in Portugal with a mortgage instead of using your savings could be much more financially beneficial if you get a good deal and a good Portuguese mortgage broker can make it as simple and stress free as possible. Some banks require life insurance cover for either the main applicant or both mortgage applicants.