Mortgages
Portuguese banks are keen to attract business from non-resident owners, which means there is a varied selection of Mortgage products available. Standard loan to values are up to 80% for non-resident mortgages in Portugal, and are always linked to the valuation of the property not the purchase price.
Our mortgage advisor has access through local Portuguese banks to mortgages offering interest only periods up to five years as well as standard repayment mortgages.
A non-resident Portuguese mortgage can potentially be for up to 25 years, with the term dependant on age and the finance provider selected. Most Portuguese banks will expect the mortgage to be repaid by age 75.
Finance in Portugal is predominately linked to a variable rate and on a repayment basis. Portuguese variable rate products are generally linked to the variable Euribor (European Inter Bank Offered Rate) and your interest rate can be reviewed monthly, quarterly, half yearly or annually. This differs from product to product.
All banks in Portugal charge an arrangement fee for dealing with your mortgage in Portugal. Some Portuguese bank costs (valuation costs, registration and handling costs etc) are payable prior to completion. Typically these fees would be between 750 and 1200 Euros and vary between lenders.
The remaining costs pertaining to the purchase including Notary fees, IMT and "Land registry" costs can be deducted from your gross mortgage advance if your valuation level allows you to.
The standard non resident document requirements for Portuguese mortgages are:-
Employed Applicants
- Last 3 months pay slips
- Last P60
- Last 6 months bank statements
- Last annual statement for all current mortgages, loans etc
- Copy of Passport
- Proof of Address
Self employed Applicants
- Last years Self assessment tax return
- Accountants reference confirming net profit for the last 2 years
- Previous 3 years audited accounts
- 6 months bank statements both private and business
- Copy of passport
- Proof of address