Mortgage Solutions

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.

The interest rate at the time of issue depends upon the credit-worthiness of the borrower. However, during the Age of Excess many tax rates actually were decreased. While some people choose to re-mortgage their property in the UK to unlock enough equity to purchase property in Portugal, approaching a bank in Portugal to get a mortgage is also very viable.

The early redemption penalty for a variable rate acquisition mortgage is 0.50% as per the regulation of the Bank of Portugal. If it is a straight forward residential property purchase Western Algarve property For Sale then most banks will make an offer, this is however often only 50% of the property purchase price or less, we offer up to 80% for non residents applying for loans in Portugal.

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.

Caixa Imobiliário is a company from CGD Group operating in real estate's marketing, has a wide portfolio of properties whether for sale or lease, with competitive prices and financial conditions. The proportion of housing loans overdue for more than 30 days, as defined by the rules of the Bank of Portugal, decreased to 5.0%-5.5% in 2017, compared with the average of 6.5% in 2014- 2016.

The early redemption penalty during the fixed rate period is 2% as per the regulation of the Bank of Portugal. So if you are purchasing your dream four bedroom villa in sunny Algarve for €450.000, add approximately 8% to the purchase price to cover all costs including taxes, stamp duties, registrations and legal fees.

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.

Mortgage lenders in Portugal have generally been averse to following the negative Euribor rate, with interest rates for prime borrowers hovering between 3.25 percent and 5.25 percent, depending on the specifics of the loan, although lower mortgage rates may be offered in certain situations.

Credit operations granted by credit institutions, credit finance companies, investment companies, leasing companies, factoring companies and mutual guarantee companies, as well as by branches of such credit institutions and financial institutions operating in Portugal.

7. Survey- A structural survey is not a legal requirement under Portuguese law and banks don't usually ask for it either on most properties, but you know the saying "If in doubt, check it out" particularly if you're looking at older properties. It's important to understand the tax implications of buying a UK property.