Mortgage Solutions

Property sales in Mozambique are somewhat of a mixed bag in terms of the amount of properties being purchased and those who can afford them. 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).

We speak Portuguese and are very aligned with the local banks and other stakeholders and know the mortgage process inside and out. If a mortgage is denominated in a currency other than your home currency, there is a risk that changes in the exchange rate may increase the equivalent value of the debt in terms of your home currency.

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 Golf (www.google.co.uk) 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.

From this point the banks will need at least 7 days to release the funds, so in practical terms you can expect an approval and funds available in around 30 days from start to finish. People who are permanent residents of Portugal are put through taxation on global income, bequests and capital gains.

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.

Firstly the Euribor (Euro Interbank Offered Rate) is historically lower than the LIBOR (London interbank offered rate) which means the cost of borrowing for a mortgage in Portugal is normally less than the cost applicable to an equivalent UK mortgage.

Before you begin the process of applying for mortgage in Portugal it's advisable to seek the advice of a mortgage broker who can offer an initial no-obligation assessment of whether it's likely you'll be approved for Portuguese mortgage and under what conditions.

However, buying a property in Portugal with a mortgage instead of using your savings could be much more financially beneficial if you get a good deal and a good Portuguese mortgage broker can make it as simple and stress free as possible. Some banks require life insurance cover for either the main applicant or both mortgage applicants.

In terms of the income you'll be required to demonstrate, bear in mind that mortgage requirements in Portugal are based on affordability rather than multiples of your income , as is the common practice in the UK. In this article, we will talk about when to start thinking about mortgages in Portugal, documentation required and the criteria you need to meet to be able to get financing for a property purchase in Portugal.