Mortgages In Portugal For Foreigners

Portugal is one of Europe's most exclusive holiday, retirement and leisure destinations. If interest rates fluctuate the repayments stay the same - only the term of the loan is affected. Taking out a Portuguese mortgage is becoming increasingly popular, however, especially as the market has become more developed and competitive. Banco Privado Atlântico - Europa offers a broad range of retail and corporate banking products and services.

If you own a plot of land in Portugal or wish to renovate your existing property, we will assist you in obtaining the best possible conditions of a construction loan. Most Portuguese lenders offer different types of mortgage repayment options on either a fixed or a variable interest rate.

The table above shows essential details of selected mortgage products offered to retail customers by the banks in Portugal: currency, borrowing rate per annum, lending amount and mortgage term. There have been times when banks have been careless and greedy in using the money of their depositors.

Iberian Properties, Spanish property experts have been working in the real estate and financial industries in Spain for over 20 years. Of course the plus side is that at times the interest rate may be lower than on a fixed rate mortgage. Purchase of a property in Portugal by non-resident citizens for use as a main residence and second home.

It allows mortgage-backed securities to be treated as the underlying loans, if the competent authorities consider that they are equivalent in the light of the credit risk. Knight Frank, the property consultancy, reports a Portuguese property price rise of 1% from the third quarter of 2014 to the third quarter of 2015, and experts are forecasting 2% gains for the average property over the next year.

Barclays, for instance, lends for Portuguese properties as well as to purchasers of property in France, Spain and Italy. With so many developers offering new and off-plan property, single houses sell far less quickly and those interested in second hand homes are usually bargain hunting at the lower end of the market.

The rule of thumb is, the more established the market, then the easier it is, so in emerging markets like Greece, Bulgaria, Poland, The Caribbean and Israel, you can get a mortgage - but the rates will be considerably higher (see below), the amount they will lend is less and they also have stricter borrowing terms.

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.

Acquisition Loan : this is the most common loan for buying houses in Portugal. It is used for both variable and fixed rate overseas property for sale (www.google.co.uk), though the vast majority of mortgages in Portugal are variable rate. This is a great option if you are able to get a low interest rate at the time of signing the mortgage deal.

Foreign banks like Northern Rock, Royal Bank of Scotland (RBS) and Halifax in the UK, banks in Ireland, Iceland and Europe also poured their money in. At last it became clear to many that there was a risk of huge losses should US house prices start to fall and interest rates start to rise.

Even if you are able to avoid the watchful eyes of the authorities on the matter of under-declaration at the time of buying the property, it is very likely that you will be adversely affected by the difference in capital gains when you decide to sell your property.