Portugal Mortgage Brokers

With such a range of mortgage products available, we can help you to choose the best product to suit your individual circumstances whether that be a repayment, variable rate, fixed rate or hybrid mortgage. If you're a tax resident in Portugal you may be eligible for IMI (Council Tax) exemption if your property's rateable value is less than € 236.250. For Portuguese nationals residing overseas it is possible to go up to 85% of the purchase price but they must be in possession of either a Portuguese passport or a Portuguese identity card.

Most mortgages can be arranged with terms of 25 years (for non-residents) and 30 years (for residents), usually up to a maximum age of 75. For non-residents, some banks have a maximum 20 year term. If you are buying a property for commercial use, such as a restaurant or a shop, for example, the maximum mortgage is 50% of the price (or valuation if lower).

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 Algarve Property Management and Rentals (navigate to these guys) 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.

Equity release mortgages are offered to clients that already own a property in Portugal and wish to release some funds from the property. As per the date of this article, variable mortgage rates in Portugal start at 3.3% per year based on a 30% loan-to-value.

There are not too many fundamental differences between a foreign mortgage and a UK based one, but bear in mind that the risks of buying a property are the same as in the UK. In Europe it is not the norm to see Mortgages offered interest only and it is very rare to see buy-to-let mortgages.

Credit operations granted by credit institutions, credit finance companies, investment companies, leasing companies, factoring companies and mutual guarantee companies, as well as by branches of such credit institutions and financial institutions operating in Portugal.

Mortgage lenders in Portugal have generally been averse to following the negative Euribor rate, with interest rates for prime borrowers hovering between 3.25 percent and 5.25 percent, depending on the specifics of the loan, although lower mortgage rates may be offered in certain situations.

The evolution in loans to customers reflects mainly the performance of the activity in Portugal, which decreased 2.5% from 30 September 2009, influenced by the drop in loans to companies, despite de rise in loans to individuals, supported by the growth of 1.9% in mortgage loans.

However, the agency expects the growth rate of new bank lending for housing to soften in 2018 and 2019 compared to the past two years," mainly due to expected smoother GDP growth and persistent restriction to the accessibility of first home purchases.