Residential Mortgage Loan Solutions

Bank Lending Rate in Portugal decreased to 1.63 percent in May from 2.31 percent in April of 2020. A yearly income tax return must be filed if the generate earnings from renting out their property. Taking out a mortgage in Portugal also means that the bank will carry out legal checks on your property before you buy. So do bear in mind that mortgages for foreigners in Portugal take all of your UK debts and regular monthly repayments into account.

Warm and sunny translates into: GDP rising (growth); low interest rates on public and private debt; low inflation; easy access to credit for businesses and private mortgages; tax rates going down; falling unemployment; stock market share prices rising ('bull' market).

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 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.

Receive informed analyses and property offers from the world's residential markets directly to your inbox. A fixed-rate mortgage allows you to budget for future mortgage Real estate agents Algarve payments as the monthly cost will remain constant throughout the fixed rate period and you are protected from future increases of the European base rate.

Most Portuguese banks offer different types of mortgage repayment options on either a fixed or a variable interest rate. We will be able to show you the most important factors regarding your mortgage: from interest rates, to commissions and taxes. Interest-only mortgages are usually only offered for new constructions, and typically only for a two-year term.

Banks underwrite by looking at a clients Debt vs. Income ratio. Remember that where the mortgage is denominated in a currency other than your home currency, changes in the exchange rate may increase the equivalent value of the debt in terms of your home currency.

Many banks offer international mortgage services for other countries in which they have operations. They will usually base the amount you can borrow on how much you earn rather than the rental income and also there is not really a market for self-certification mortgages.

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.

This is complicated by the fact that banks lending in Portugal do not always offer the same conditions to clients, even if they have similar profiles. A better option is to use a mortgage broker, who is used to dealing with this type of transaction, knows exactly which banks and branches to ask, and can probably secure you a better rate.