How to get a mortgage in Portugal
When you’re looking for a mortgage in Portugal, there are lots of factors to consider! The process of finding a mortgage to buy a property in another can be quite overwhelming, which is why A Place in the Sun Mortgages is on hand to offer expert advice and to help find the right Portuguese mortgage for you.
By using a mortgage broker like A Place in the Sun Mortgages, you’ll receive expert advice and access to some of the best mortgage rates from the major Portuguese lenders. We will guide you through the application process, and help you navigate the language barrier too. Please note, at the moment there are no fees chargeable for any advice given in Portugal.
Portuguese mortgages - interest rates and LTVs
At the moment, Portuguese mortgage rates are particularly attractive, with low interest rates:
- Max 80% loan to value
- Max term 40 years
- €60,000 minimum loan
- Rates from 0.873%
Rates now start at 0.873% for a variable rate of up to 80% loan-to-value (based on the purchase price) and 1.2% for a fixed rate of up to 80% loan-to-value.
Interest-only deals are rare so most mortgages are on a repayment basis with the maximum term 40 years. If you are 80 years or older, it is advisable to speak to a mortgage specialist as they are ways for you to obtain a mortgage.
It is worth remembering that monthly mortgage payments will be in Euros and the Sterling rate will vary so it is a good idea to have a currency strategy in place to mitigate any fluctuation if you are paying your monthly mortgage payments from the UK contact A Place in the Sun Currency for more information.
Speak to a mortgage broker
If you decide you want to explore Portuguese mortgage options via a specialist mortgage broker then you can make an enquiry to A Place in the Sun Mortgages via the form on this page, no obligation and no fee.
Your enquiry will go to A Place in the Sun Mortgages, a mortgage broker who help British buyers research the local mortgage market and secure the funding they need.
What to know before applying for a mortgage in Portugal
It is worth understanding the lending criteria as early as possible in order to find out how much you can borrow as this will impact the value of properties you search for.
You will also need to understand the purchase costs such as legal fees and taxes, you can read about these in our free Portugal Buying Guide.
Pre-approval on a mortgage will tell you exactly how much you can borrow, at what interest rate and for how long. This sort of preparation will mark you down as a serious buyer when you start speaking to agents and can assist when negotiating on price with the vendor.
Find out more about applying for a mortgage in Portugal by contacting the team at A Place in the Sun Mortgages – fill out the form on this page and we will be in touch to answer your query and help you start the application process.