ExpatBriefing.com

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.

Looking forward, we estimate Bank Lending Rate in Portugal to stand at 2.31 in 12 months time. Buildings insurance is mandatory when buying a property with a mortgage in Portugal. Mortgages for property in Portugal are normally available for up to 75 percent of the value of the bank valuation (loan to value LTV).

There are no restrictions on non-EU residents buying property in Portugal, and the government does what it can to encourage foreign property investment. Think of it this way - You want a loan, so you go to the bank and they want to know the value of your assets, in order to determine your financial situation at the time you want the loan.

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.

Data from the Bank of Portugal indicate that in the first nine months of the year, financial institutions extended 5.953 billion euros in housing loans. Once an application has been approved by the Bank and the terms and conditions have been offered and accepted, all legal documents will be prepared by the Bank's lawyers.

One of the key problems is that the financial institutions will not release what their real position is. The same thing is true of situations here in the US. Banks are allowed to carry items on their balance sheets that do NOT have to have the true value posted.

A service from the online mortgage information and application processing system offering you the best loans in Portugal too. Property investment in Portugal is now more popular than ever as investors move money from unpredictable financial markets in to bricks and mortar.

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 Mortgage interest rates in 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.

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.