How Did We Get Here

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. In fact, with Mortgages4all, it has never been easier to obtain mortgage funding for Portugal. Portuguese mortgage lenders do not necessarily extend the same offers to all clients, even if they have similar profiles. The average interest rate increased one base point to 1.36% for new residential mortgages.

Available up to 60% of the property purchase price with rates from Euribor + 2.1%. In Portugal, they can account for up to 10% of the property price, so you need to ensure you can handle those as well as the required deposit out of your cash reserves. For example, global banking giant Santander has a Portuguese operation, offering many of the same accounts and deals that you can get elsewhere in the world.

For non-residents who pay their taxes outside Portugal, generally speaking the maximum mortgage amount is 70% of the purchase price (or valuation if lower), but some banks have a maximum amount of 60%. And further growth is predicted, which can only be good news for the Portuguese property market.

Euro mortgages are available, and the minimum loan amount you can borrow depends on the lender you use. There are also additional legal expenses connected to the transfer of ownership at the land registry and fiscal department when buying a property in the Algarve, Portugal.

Since the housing market collapse of 2008, Portuguese lenders have become more conservative on the types of mortgage products they offer. By using one or more overseas property (plus possibly an existing UK property) 100% + mortgages may be available for any new property.

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.

Mortgage rates in Portugal have been dropping consistently since the first quarter of 2014, when they averaged 3.37%, according to Statista The most recent data, based on the third quarter of 2018, shows an average Portuguese mortgage rate of just 1.33%.

The banks typically offer loan terms of up to 50 years for residents and 30 years for non-residents. The fixed-rate mortgage basically allows borrowers to pay a constant Holiday Homes Portugal rate for a certain period. As with mortgages in the UK, the type of mortgage you are eligible for will depend on your situation and how you intend to use the property.

If you require financing for a property purchase in Portugal or if you're interested in comparing your current loan conditions, speak to us as we offer a free and independent finance solution service that is determined to find you the best mortgage conditions on the market.