Mortgages In Portugal

 

Are you interested in a mortgage for buying a property in Portugal? “Mortgages In Portugal”, a Portuguese mortgage review website, can help you find the best deal for your needs. This means you won’t have to shop around for a mortgage, or try and find your way through the banking system with limited Portuguese!

Because they are independent, they work for you, not the banks, and they have a great selection of mortgage products. Whether you are buying your property or building from scratch, they can help find the perfect mortgage to suit your situation.

They select the mortgage that best suits your needs and make sure you get the best deal available in the market. They guide you through all the steps of the process and do the negotiating for you.

MORTGAGES IN PORTUGAL

Portugal Mortgage Options

Are you interested in a mortgage for buying a property in Portugal?  A mortgage review site, Mortgages in Portugal, can help you find the best deal for your needs, which means you won’t have to shop around for a mortgage, or try and find your way through the banking system with limited Portuguese!

Because they are independent, they don’t work for the banks, and they have a great selection of mortgage deals in Portugal. Whether you are buying your property or building from scratch, they can help find the perfect mortgage to suit your situation.

The brokers select the mortgage that best suits your needs and make sure you get the best deal available in the market. They guide you through all the steps of the process and do the negotiating for you.

Property Purchase
If you are buying a home in Portugal you need to know all of the options that are available to you. Are you buying it to live in or as an investment? Do you want an interest only option? How long a term is available to you?

View the current mortgage deals available and then contact the broker with the most suitable mortgage deals.

Renovation / Home Improvement
Whether renovating an old ruin or just bringing an older property up to date, it can be a daunting task without having to search for the ideal way to finance the work.

Allow the mortgage brokers to find the best possible solution, and take the strain out of financing your property upgrade.

Moving House
Do you want to move house? Have you found the house of your dreams but still not able to sell your existing home?

Schemes are available whereby you will be able to buy your new home, deferring the mortgage repayments, so you can maintain the payments on your current mortgage. that you only pay the mortgage on the new purchase for a period of time until you sell your existing property.

Building
Traditionally, if you wanted to buy a plot and build on it, you had to have funds available to buy the plot outright and be able to bear some of the costs of building also. Now some of the lenders are taking a more liberal view and are able to fund in most cases, up to 40% of the land price and 60% of the building costs thus making a self build project easier for many people.

Re-mortgaging
Allow some of the equity tied up in your home be released to allow you to enjoy life to the full or even to invest in a second home. There are restrictions with this option, however it can be a very straight forward way to raise capital, for any purpose.

Mortgage Transfer

If you already have a mortgage Mortgages in Portugal can still help.  They can re-negotiate your mortgage and arrange to transfer (at no cost to you) to the bank that offers the best deal. With this option, you can make significant saving on your current and future mortgage repayments.

Mortgages / Loans In Portugal

Mortgages / Loans In Portugal

When purchasing a property in Portugal, having a mortgage or loan in euros makes sound financial sense as you can benefit from the low interest rates in Portugal. It also means that your asset and loan are in the same currency so you can clearly compare the reduction in your debt against the capital appreciation of your property.

      

Loans In Portugal – A Solution For Cash Buyers With A Poor Exchange Rate

If you are cash buyers and have the sterling capital but are hesitant or wish to avoid  the poor currency exchange rate,  you can  transfer across your sterling into a sterling bank account in Portugal. A short term euro loan can be secured against your sterling savings  with the euro loan being redeemed when the £  rate improves and you are comfortable to do the currency exchange. Although you will be paying interest on your loan, you however will be receiving interest on your sterling savings, probably more than you will be receiving in the UK.

Additionally, this is also an alternative method to those that require a mortgage but will still need to convert their sterling to euros to form part of the deposit for the purchase. A mortgage can still be obtained against the property with the sterling savings in a Portugal bank account being used to raise a euro loan for the deposit.

Click here for current best currency exchange rates…

Mortgages In Portugal – Your Loan & Asset In The Same Currency Asset

Mortgages / loans in Portugal are available with variable rates, interest only or fixed term rates to a maximum amount of 70% of the valuation of the property. To apply  you would need to complete an application form and supply the following documents below and  a decision is usually given within 3/4 complete working days.
Copy of each applicants passport
Last 3 months bank statements -current & savings accounts
Proof of residential address (i.e utility bill)
Credit report (available from www.experian.com or www.equifax.com or www.icb.ie)

If employed
3 most recent salary slips
Copy of last years tax declaration (i.e P60)
Letter from employer stating professional status, length of service & gross annual income

If self employed
Copies of last 2 years company profit & loss accounts signed by certified accountant
Self assessment tax return

If retired
Copy of pension statement

If your loan is approved a valuation will then be carried out on the property  and you will then receive a formal offer letter stating terms & conditions. Your lawyer will deal with the pre- registration of the mortgage and provide all of the property documents so that a date can be booked for the signing of the deeds.  (If your lawyer has Power of Attorney it is important that you inform him/her that you are applying for a mortgage so that they can include a special clause on the POA to allow them to deal with pre-registration of the mortgage)

You should allow between 4-6 weeks to complete fully as timing can depend on the property you are purchasing and the correct documentation being presented. The loan that you will receive from the bank will have two amounts debited from it – the first being a government mortgage stamp duty of 0.6% of the loan amount and the other being  mortgage arrangement fees.

Email here for more information on mortgages / loans in Portugal

 

Mortgages in Portugal

If you would love to purchase a property in Portugal but are unsure how to finance the purchase and are concerned about the current exchange rate, then it may be worth considering obtaining a mortgage in Portugal.

There are many benefits to obtaining a mortgage here and it could still be possible to escape the the dreary UK weather and purchase your dream home in the sun! Gatehouse International Portugal are based in Almancil in the Algarve and have a property to suit everyone. Whether you are looking to purchase a quarter share in a lovely golf apartment or to invest in a magnificient villa with sea views then we have something for you.

We have listed below some reasons to look into the various options available to you in obtaining a mortgage in Portugal. Gatehouse International work with a local financial adviser based in the Algarve and would be pleased to put you in touch with them.

• Euribor is lower than UK interest rate
• Sterling can be banked in a sterling account in Portugal and gain interest (currently 4.9%) and used as collateral for a mortgage. When the sterling becomes stronger client can redeem the mortgage if they desire
• Early redemption fee is fixed by the government at 0.5% (eg. €100,000 mortgage, redemption would be €500.00)
• Set up fees are much lower than the UK
• Mortgage can be set up within 4-8 weeks
• Can lend up to 90% of the value of the property if non resident
• Can have a mortgage up to 80 years of age
• Can have interest only for up to 15 years
• Spreads can be as low as 0.4%
• Low valuation costs
• Only assets in Portugal are at risk
• Use of a financial service that in 99% of cases will beat other competitors on rate
• Three year fixed rate
• The finance company will always advise of new products available and arrange a mortgage transfer to better conditions
• Equity release can be combined with mortgage transfer to obtain maximum loan to value release of funds
• Arrange free mortgage transfer with better conditions

Contact our Algarve office for the cost of a local call on 0208 1231880 or on 00351 289356395

Alternatively look on our website for a wide selection of properties in the Algarve, Alentejo and Blue and Silver Coast regions

Mortgages and financial advice in Portugal

When buying a property in Portugal, it is worth contacting a Portuguese bank with regards to mortgages available as they can often offer superior rates or conditions than that offered by your current bank.

 

We recommend that you contact an independent mortgage adviser in order that they can establish your particular requirements and find the best deal for you. We currently recommend such a company here who are based in Almancil although they are happy to meet you in any area of the Algarve. They do not charge a fee for their services and by contacting them you will not have to navigate your way around the banking system if you have limited Portuguese. They work independently and are able to offer a great range of mortgage and investment products through a number of well known financial institutions here in Portugal. As well as mortgage advice, they are able to offer a range of services such as investment advice, home, car and life insurance and foreign exchange transfers.

General documentation required to apply for a mortgage in Portugal is listed below.

• Portuguese tax number (the company can arrange this for a small fee)
• Copy of ID card or passport
• Last 6 months of bank statements (current and savings)
• Birth certificate
• Last years tax return (P60)

Further documentation will be required with regards to your current employment status. Mortgages for non residents are offered up to 80% loan to value. The borrowing level is based on the house valuation and not the purchase price.

Please contact us if you would like more information and we would be pleased to ask a representative to contact you to discuss your requirements further. You can email us on gatehouse@sapo.pt or call on our UK number +44 208 123 1880. This will divert free of charge to our office in the Algarve.