Getting A Mortgage For Property In Portugal

NOVO BANCO has agreements established with several property developers, enabling you to access special terms for loans, spread and fees. 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 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.

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.

If you require financing for a property purchase in Portugal or if you're interested in comparing your current loan conditions, speak to us as we offer a free and independent finance solution service that is determined to find you the best mortgage conditions on the market.

Portuguese mortgage lenders offer opportunities for foreigners to secure a mortgage loan. The early redemption penalty for a variable-rate acquisition mortgage is 0.50% as per the regulation of the Bank of Portugal. ECB data suggest that the average mortgage borrower pays an interest rate of 1.2% per year on August 2017 compared to 1.7% -2.0% paid by new mortgage borrowers (new mortgage loans).

Corporate and Commercial Finance (Anglo Portuguese) Ltd., can arrange mortgages on completed properties, properties under construction, properties being sold off plan, properties requiring stage payments during construction on selected developments, properties already owned.

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.

First-time Buyers accessibility is expected to decline over the next two years, as house prices grow faster than the daily household income available to these borrowers," Fitch predicts. To purchase a property in Portugal you will need a Portuguese fiscal number - obtainable through your Lawyer.

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 renting out a Property in Portugal, 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.

Portuguese banks have strict affordability criteria which means that, including the mortgage you are applying for, the total of all debt service payments you have to make (inculding your UK mortgage and any other personal loans you have in the UK or elsewhere) cannot be more than 35% of your net income.

Our mortgage calculator for Portugal will allow you estimate the rates that each bank offers. That said, we work with an expert in Portuguese mortgages and so offer a very good chance if the criteria are met. Arranging your Spanish or Portuguese mortgage in good time allows you to find the mortgage in Spain or Portugal that best suits your requirements and avoid overpaying.