Buying Property In Portugal

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. This is very similar to the UK. A network of Agents through the country will give you a selection of properties to choose from and you can make offers as you would in the UK. Don't forget too that we can put you in touch with a selection of bank repossessed properties available at vastly reduced prices too.

Stamp Duty is charged at a fixed rate of 0,8%, whereas Purchase Transfer Tax for villas and apartments is charged according to a sliding scale that is altered each year, varying between 1% and 8% (e.g. 6% over €550.836 for non-permanent habitation) of the declared value of the sale.

Then of course the Investment banks were continuously creating new investment vehicles such as synthetic CDO's which basically were side bets on the subprime mortgage markets that realistically speaking had no tangible value for helping out the markets other than investors betting on the markets.

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.

Although things can often change quite dramatically over the period of a mortgage, it is worthwhile noting that Interests rates on the European Continent are typically lower than in the UK. The problem is that the low interest rates are starting to attract a lot of buy-to-let investors, who are finding that the UK market has begun to mature.

Simon Conn is an Introducer Appointed Representative of Cherry Mortgage & Finance Limited which is authorised and regulated by the Financial Conduct Authority under number 730706 in respect of UK mortgage, insurance and consumer credit related activities only.

Our Portuguese mortgage specialists firmly believe in our motto ‘Financing Projects Enhancing Lives' and we will always endeavour to find the best financial solutions for you whether you are an experienced investor adding to your portfolio or somebody searching for your dream home in Portugal.

Once you've selected your dream Portuguese property and have either an accepted offer or have a sales contract in place with the seller, you can bring the remaining documents to your mortgage lender and follow an application process that is similar to much of Europe.

Due to the company's experience and competitive product range Corporate and Commercial Finance (Anglo Portuguese) Ltd., works closely and is recommended to future non-resident purchasers from numerous Developments, Estate Agents and Lawyers across Portugal and its Islands as a result the Managing Director frequently visits Portugal to hold meetings keeping strong ties with these Developers, Estate Agents, Lawyers and especially the Banks.

You may be interested to know that many of the world's leading banking institutions have offshore and international arms and that because of their global presence the likes of HSBC and HBOS for example all offer international mortgages and specific mortgages and home finance solutions in various countries.

In the case of the three month Euribor rate, your mortgage repayments will be fixed for three months at the prevailing rate at the day you sign the mortgage Mortgage interest rates in Portugal deed, thereafter, every three months later the bank will apply the average rate of the three month Euribor rate to your mortgage from the previous month.

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 are not regulated by the Financial Conduct Authority, nor are they protected by the Financial Ombudsman Service or Financial Services Compensation Scheme.