Portugal Bank Lending Rate

If you're buying a property in Portugal , you may be fortunate enough to have found a cheap rural property which you can buy cash down, or you may have funds from sale of a property or business, or an inheritance which you can use to purchase a property without requiring finance. The Euribor rate is set by a panel of European banks on a daily basis and is generally an indicator as to what rate European banks will lend to each other. The average fees & taxes applicable to a property sale are usually between 5-8% depending on the purchase price.

As a foreigner or non-resident, if you are looking to buy property in Portugal and want to use a mortgage to finance the purchase, now is a good time because the banks are lending again thanks to the economic recovery and the solid real estate market.

Portuguese banks have strict affordability criteria which means that, including the mortgage you are applying for, the total of all debt service payments you have to make (inculding your UK mortgage and any other personal loans you have in the UK or elsewhere) cannot be more than 35% of your net income.

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 Real Estate Agents Vila Sol 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.

Hinting last week at this coming down the line, Público stressed that the nation's banks expect ‘something in return' from the government, in terms of a guarantee that they will not be penalised" when it comes to solidity. If you are serious about buying a property in Portugal then you should start arranging your Portugese mortgage almost before you do anything else.

On the other hand, accessibility for mortgage customers (old mortgage loans) is expected to remain stable, as interest rates are not likely to rise substantially over the next two years, he said. Portuguese mortgages can be arranged for acquisition, renovation and construction and the mortgage is secured on the property in Portugal.

Following the trend of the Portuguese property market, bank valuations are continuously rising since several months. Also featured is expert advice on buying new build properties, how to furnish your home in Portugal as well as tips to make the most of your rental property.

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.

When it comes to mortgage rates, Portugal bases them on the Euro Interbank Offered Rate (Euribor), plus a margin typically between 1.50% and 2.50%. Valuation report - once you have received a formal mortgage offer the bank will carry out a valuation of the property.