Guide To Buying In Portugal

If you're buying a property in Portugal , you may be fortunate enough to have found a cheap rural property which you can buy cash down, or you may have funds from sale of a property or business, or an inheritance which you can use to purchase a property without requiring finance. When analysing a debtor's capacity to repay, banks also must take into account factors such as a 3% increase in the bank rate and a decrease in monthly income in the case of customers who, at the end of the contract, will be older than 70. We negotiate the terms and conditions with various banks to bring you exclusive mortgage conditions only available to Mortgage Direct.

So, for example if the applicant(s) income is £3,000 after tax and they have a mortgage of £450 per month in the UK, plus a car loan of £100 per month and the proposed cost of the mortgage in Portugal is £350 per month their debt (£900 per month) to income (£3,000 per month) is 30 per cent, therefore within the guidelines.

In 2011 over hanging economic pressures will continue to loom over the UK. November 2010 saw inflation rise 3.3%, which is well above the Bank of England's target of 2%. Obviously the Buy a Property Algarve more this increases the more it affects our standard of living and if it hits 4% which is possible, the government will have to seriously think about increasing interest rates.

We have a 98% approval rate and our service comes with a money-back guarantee if the terms offered cannot be achieved. As a Portuguese Resident, you may borrow up to 90% (75% as a non-resident) of the lower of the property price and the property valuation. Fixed rate mortgages are available from some lenders and the fixed rate period can range from 1-30 years.

Whilst many people will focus just on the pricing for a mortgage facility it is important to remember that there are other factors that need to be looked at. Some banks have a mandatory requirement for life insurance for example which can escalate the costs of a mortgage and require inconvenient medicals so for many non residents they are normally best avoided.

Once you've found a property in the Algarve to buy then the mortgage approval process can be completed fairly quickly. There's no such thing as a ‘buy-to-let mortgage' in Portugal, banks do not differentiate their offering. Fiscal residents in Portugal (i.e., those who pay tax there) may be able to borrow up to 85-90% of the sale price in some cases.

Due to the company's experience and competitive product range Corporate and Commercial Finance (Anglo Portuguese) Ltd., works closely and is recommended to future non-resident purchasers from numerous Developments, Estate Agents and Lawyers across Portugal and its Islands as a result the Managing Director frequently visits Portugal to hold meetings keeping strong ties with these Developers, Estate Agents, Lawyers and especially the Banks.

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.

Most Spanish mortgages with variable rates are calculated as Euribor + X%, where X is normally anything between 0.75% and 2%. It is advisable to start the mortgage process as early as possible, even if you are not totally sure of the kind of property you want to buy.

The way the government should have tackled this by suspending everything by having a total lockdown curfew, and ban all payments of mortgages, rents, hire purchase and leases, credit cards and bank loans, taxes,direct debits, gas and electricity etc, so that nobody has to payout anything, all the government then has to do is make sure everyone has money for food and drink which is all they need money for while everything is suspended.