Advice on Mortgages in Portugal

[Joshua]

Welcome all,
I am about to throw myself into the mortgage pond and any tips would be gratefully accepted. Am getting lots of different bits of advice. I have been told that for me to get a mortgage in Portugal will be very involved/difficult. I am self employed and only need a smallish mortgage (less than half of what I pay for my London property). Most of my income will (still) be generated in the UK.

Any financial whizzes on this forum? Or maybe someone has a reliable contact they would like to pass on?
Regards
Joshua

[justin]

Hi Joshua,
Portuguese Mortgages are not impossible to get hold of as long as you have proof of ability to repay and a proven track record. They will lend up to 25 years as long as you are under 55 now and up to 75% of the valuation of your chosen property. Interest rates are lower than UK and the better agents don?t charge an application fee Try Welcome to Portugal Property Services or just go to one of the local banks like Baniff or BES they are all happy to help.
Thanks
Justin

[abelhas]

we now have a relationship with an english mortgage broker specialising in expats in europe.

[bones]

I need a mortgage on a T2 property in Monte Santo Carveiro.Does anyone know if a bank has valued any properties their and their value

[Jumbo1]

Originally Posted by bones

I need a mortgage on a T2 property in Monte Santo Carveiro.Does anyone know if a bank has valued any properties their and their value

Bones, if you want to contact me at, boeman55 at yahoo dot co dot uk, I can give you some info on that.

[ourhomealgarve]

Portuguese banks lend upto 80% of loan to value of property,for 25 years or 75 (age)whichever comes first.
The EURI-BOR european base rate is 4.596% ,
Then on top of this you pay the bank spread,which is where the bank makes its money.
This varies with different banks 0.8 to 1.3 dependant on the package you take with the bank i.e credit cards, cheques,etc.
The EURObor is alot stronger than the Stirling as there are 12 member countries that all have to agree for on the change,
The bank will value the property when you apply for mortgage(independantly)
then the bank will look at your expendible income i,e what is left after all your outgoings,
The formula they like is normally is minimum 55% left after all outgoings.
Here are documents needed for each situation on applying for a mortgage in Portugal.
I am a licensed Agent in Portugal based in Albufeira.AMI-7084,
Good luck and any other questions PM me.
David,

The documents required are as follows:

General
-Portuguese tax number.
-Copy of ID cards or passports.
-Last six months personal bank statements-current & savings.

If Employed
-Last years tax returns(P60 in the UK).
-Last three months pay slips.
-Reference from employer (simple letter stating that has been working with the company for a certain time,plus the normal considerations in this regard).
-Summary Assessment of the Tax return.

If employed by a limited company with a shareholding of 20% or more
-Last years tax returns.
-Last six months business bank statements.

If self Employed
-Last years tax returns/tax computation.
-Last six months business bank statements.
-Summary Assessment of tax return.

Other income (if applicable)
-Confirmation of pension received for the last three months.
-Confirmation of Rent received –copy of tenancy agreement plus:
-Copy of bank statements showing rent payments.

Liabilities (if applicable)
-Latest mortgage statement.
-Details of personal loans (principle due,monthly instalments).
-Copy of tenancy agreement.

House Documents
-plans/drawings of the site or of the property.
-If constructing/renovating the property –copies of the planning permission
& building licences.
-Credit report.

Plus any other investments you may have saving plans-ISAS,PEPS,