Three World Financial Crises

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. The banks in Portugal usually take into consideration the borrower's financial position and the property's valuation when analyzing mortgage approval. Around 75% of people own their own homes in Portugal, which is 10% higher than the average homeownership rates in the UK or USA.

Since 2006 Mortgage Direct have been liaising with banks, estate agents and international property buyers in SpainвЂs ever-changing mortgage market. For non-residents, rental income is taxed at a flat rate of 28%. Unless you speak Portuguese fluently, it's advisable to use a mortgage broker who knows the Portuguese mortgage system as not all the banks have fluent English-speakers.

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.

Families are taking advantage of the improvement in their financial perspectives, taking into account the recovery of the economy and employment, to return to the credit markets for home loans. Generally speaking, in Portugal you can obtain a maximum loan to value (LTV) of 70 per cent of the purchase price (or valuation if lower).

When you combine the three influencing factors of Government interference on basically dictating who is creditworthy or not, depository institutions packaging unregulated risky subprime bonds, and record low interest rates, speculative fervor will occur and bubbles will be created in a capitalist society.

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 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 interest rates of a Portuguese variable rate mortgages is linked to either the 3 or 6 month Euribor rate and increased by the margin (spread) that Cheap Algarve Property the bank applies. Construction mortgages are for property buyers who wish to build a new house from the ground up or to renovate an existing property.

Then once the property was completed, the bank offered a loan of 450.000€ for a 25 year period. Capital gains tax for non-residents is charged at a flat rate of 28% and is payable at the time of sale. You'll also find that, depending on the lender, there are loans available at both variable and fixed rates.

According to the BdP's latest figures for loans and bank deposits, Portugal's banks issued 810 million euros worth of residential mortgages to households, down from €919 million in July - which was already a decrease from the month before - but still quite a bit more than the €709 million granted in August 2017.

After the fixed rate period expires, the mortgage will automatically convert into a variable rate mortgage (unless the rate is fixed for the entire loan period). Under Portuguese law the pre-payment penalty from all banks is fixed at 0.5% for variable rate loans and 2% for fixed rate.