Advice on Portugeese Mortgages Please

kle87

Hi,

Im purchasing a property in Portugal and was just wondering if anyone had any advice on the process which I would need to undertake to obtain a mortgage?

Thanks

Bufger

do you know the local area. Are you familiar with the language. will you be renting it out? what management companies are available to look after the property (if applicable). How much rent are you likely to get. What policies do they have in place if you default. Is there a different policy if you're a foreigner?

The point is i wouldnt even consider buying somewhere abroad unless you've done your homework. By asking the question you did it suggests you havent looked into it at all and could very likely come across some big expensive problems along the way.

Do your homework before you take on a big responsibility like that :-)

kle87

Yes weve done our home work with regards to the purchase of the property but as we are due to complete in the coming months we were looking for more specific information on rates or particular mortgage companies which people may have dealt with. Perhaps I should have been more specific in my origrinal post, thanks for your concerns

Bufger

ahh ok, apologies! I was worried you would fall into a trap as you sounded unprepared. Unfortunately i cant offer any assistance in Portugal, i only had USA/UK experience gl!

herbiesjp

Did you want to get the mortgage in Portugal, or in the UK via a UK bank

There are some UK options, but they tend to be specific on precise circumstances

Did you want a Euro mortgage or Sterling?

Max LTV I would say is around 80%, and rates could be from low 3%

However will all depend on the scenario

happybroker

kle87 wrote: »

Yes weve done our home work with regards to the purchase of the property but as we are due to complete in the coming months we were looking for more specific information on rates or particular mortgage companies which people may have dealt with. Perhaps I should have been more specific in my origrinal post, thanks for your concerns

...quite a few of our banks offer international mortgages now and some are better than others. The rates though tend to be very good although you will need to put in 40% deposit for most.

Lloyds TSB do one that allows you to switch currencies between the one you earn your primary income in and the one in the country your property is based which can help you to reduce the size of the debt.

There are lots of on line forums aimed specifically at overseas property which could be very useful and if you know a good broker I would be surprised if they didn't have access to some one.

kle87

Hi, Thanks for the advice you gave us alot to think about.

We had another thought and we were wondering if you could advise if possible.

Isit possible to purchase or obtain a mortgage in any currency as the exchange rates for some european countries offer a far better return than the Euro e.g. Swiss Franc.

Thanks very much again!

herbiesjp

Yes you can.

That is why I asked the question.

However these are high risk. So whikst one day the currency could be in your favour, the next day it could go totally against you