Portugal proving popular with overseas buyers say mortgage lenders

Tuesday, June 19, 2012

Portugal proving popular with overseas buyers say mortgage lenders

Overseas mortgage specialists Conti have seen an increase in the number of people enquiring about buying property in Portugal over the last two months, making the country the third most requested destination for overseas property buyers looking for a mortgage.

Clare Nessling, Director at Conti, says: “Portugal may still be in recession and stuck with the label of one of Europe's so-called PIGS (Portugal, Ireland, Greece and Spain), but it has managed to escape the type of property crash experienced by Spain. This is due to its tighter lending conditions and stricter planning laws which have helped to prevent over-development. Tourism in Portugal is strong too, particularly in the Algarve and increasingly along the likes of the Silver Coast, so property rental opportunities are abundant.

“The recent strengthening of the pound against the euro means that investors can get more for their money at the moment."

Despite the financial situation overseas property hunters can still borrow up to 75 per cent of the value of the property (although 80 per cent is possible) and rates are very reasonable, starting from around 5 per cent. And there's plenty of choice – Conti currently work with five banks in Portugal.

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