Portugal Loans Suspended

NOVO BANCO has agreements established with several property developers, enabling you to access special terms for loans, spread and fees. The vendors in the past, in order to reduce the capital gains tax and other charges levied in the event of a property sale, used to under-declare the actual price of a resale property. Constructions loans are offered to private individuals that own a plot of land with a valid, approved building project for habitation purposes.

Leaving the financial side of your Portugese property purchase until the end does you no favours whatsoever. There are still some repossessed homes to be had from the banks in Portugal. However, while 30% of your net monthly income minus any existing debt repayments is the normal measure of affordability, the brokers we work with may be able to find you a Portugal mortgage based on 30-35% of your net income.

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 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.

The process is very simple and we will personally introduce you to a bilingual representative of the bank or financial institution. The interest rates on these sub-prime mortgages were in fact higher than banks and investment houses could earn elsewhere, so they were all eager to make the loans or to buy the mortgages from original lenders in order to increase their profits.

We will match your requirements with the leading banks here in Portugal and provide you with the best mortgage rate and terms to suit you, with no charge for our services. The main cost is IMT transfer tax, which could be as high as 10% of the property value if you're non resident and live in a tax haven, or absolutely nothing if you're buying a low cost property as your main family home.

The Bank of Portugal recommends a maximum of 40 years as a limit for mortgages and remortgages with consumer credit limited to ten years. For example, The Halifax will provide mortgages on properties in Spain and Barclays will lend on properties in most of the mature European countries like France and Spain and Italy.

What is true is that the number of banks that still offer mortgages to non residents have been reduces by about half. The Portuguese banks have struggled for funding in recent years and so are only approving very strong cases. Portugal Realty is a leading Portuguese real estate agent specialising in properties for sale in Portugal.

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.

The good news is that once you've found the perfect property the buying process in Portugal is relatively simple and straightforward. There Mortgage interest rates in Portugal (www.google.co.uk) are many other variables to take into account, but this gives a very basic idea of how the banks assess the applicants for the mortgage.

However, the ratio of bad loans in Portugal is 6.1% twice the average in Europe. All mortgages are full status and proof of income and outgoings will be required by the lenders. Mortgages in Portugal can be arranged for the acquisition of property, renovation or construction, the mortgage is secured against the land or property here in Portugal.

A mortgage broker will get you the cheapest possible deal, with the right features for you, which has the closest match to your personal finance circumstances, chosen from their panel of banks and lenders. In fact, many of Portugal's first non-resident schemes were designed in consultation with the company's Managing Director and the Banks.