Euro Investors Have Two Ways Of Profiting In US Dollar Investments

Obtaining a mortgage in Portugal in Euros will probably give you the best interest rate for your mortgage, however it is often easier to raise the money in the UK (or your home country) and then purchase the Portuguese property outright. With banks in Portugal now adopting greater caution following the recent Portugal property crash, most lenders now only offer home loans on a repayment basis - including both interest and payment towards the capital loan amount - with borrowing rates starting from around 6%. However, there are still some interest-only deals available.

For the last few years there's been a noticeable increase in the level of client's looking at local financing, mostly due to the excellent rates on offer, often under 1%, as well as clients from the UK looking to hedge their bets on the exchange rate fluctuations.

The rule of thumb is, the more established the market, then the easier it is, so in emerging markets like Greece, Bulgaria, Poland, The Caribbean and Israel, you Real estate agents Algarve (helpful resources) can get a mortgage - but the rates will be considerably higher (see below), the amount they will lend is less and they also have stricter borrowing terms.

However, remortgaging is favorable because releasing equity on the UK property enables the purchaser to make the payment in cash and to avert a second mortgage. The standard rate that most banks in Portugal charge for a valuation is €175 plus IVA, however this may cost more (up to €500 plus IVA) if you want the valuation carried out at the beginning of the application.

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.

With UCI new mortgage solutions for non-residents, buying or changing house in Portugal is now very simple. Virtually all mortgages are principal plus interest loans, though banks offer both fixed- and variable-rate mortgages. Also, in order to pay the taxes due upon signing the transfer deed, you will need to have a fiscal number in Portugal and may want to open a Portuguese bank account Your fiscal number can be obtained at a local tax office.

Cold and bleak translates into: GDP steady or falling (recession); high interest rates on public and private debt; inflation rising; shortage of credit for businesses and private mortgages; tax rates going up; rising unemployment; stock market prices falling ('bear' market).

Finance is available for the purchase of property in Portugal. Caixa offers access to acquisition and financing of housing properties from Partners with competitive price and mortgage conditions. By using ComparaJá.pt you can access a whole range of mortgage offers in the Portuguese market.

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.

For a Portuguese mortgage, the minimum deposit is usually at least 30% of the purchase price for non-residents, because financing institutions provide only between 60% to 70% credit of the valuation price. Mortgage loans are secured loans used for real estate financing purposes (for example, purchase of a new or existing property, construction of an own property, property renovation) without paying the entire value up front.