Buying house in portugal

princessposh

Hi there, not sure if i've posted this in the right place!......any advice would be gratefully received.

Hubby and I have nearly paid off the dreaded mortgage (using overpayments on flexible mortgage) and are considering buying a lovely property we've seen in Portugal . We'd use the property as a holiday/future retirement home and rent it out to hopefully cover a chunk of the new debt.
Our problem is whether to drawdown a chunk of the reserve on our UK flexible mortgage - cuurently charging 3.65% with 9 years 9 months left on term (and take the current exchange rate in one hit) or get a Portuguese euro mortgage ( over 15 years) and exchange every month. I'm in favour of using the drawdown option and overpay again to reduce interest - even with the likely interest rate hikes in the future!

would really appreciate your thoughts / advice !

traveldude

In your position a draw down would be better. Prices have been hit hard and with still not much movement in the market you should be able to negotiate a good price. I would advise going out in the winter for better value as most properties that didnt sell in the summer will be discounted. Aim to complete purchase April / May at the start of the rental season.