Mortgage Regulations In Portugal

[DrQ]

I am in the market for a mortgage in order to buy a property in the Algarve. I have recently read a couple of reports about people who purchased in Spain and subsequently defaulted on mortgage repayments. According to Spanish regulations the banks can pursue outstanding mortgage related debts against assets in the UK. As I understand it this differs to the UK where lenders are only able to seize the property itself that the mortgage was taken out to purchase.

Does anyone know how Portuguese law works here?

Regards

[Portuguese Law]

The applicable laws are more or less the same as in the U.K. that is the bank will start its credit collection by the property covered by the mortgage if that is not eneough to cover the debt the bank can also ask the Court to freeze assets owned by the Debtor.
Regards

[Magellan]

Surely though they would have a hard time going after assets outside the country?

[Portuguese Law]

Well, yes and no!
At the end of the day it will all depend on the mortgage coverage (eg it may cover immovable property outside Portugal) and the the value for the debt.
If the Lender has a huge amount has a credit it might be usefull to use the tool provided he as already a Portuguese Court decision that will enable him to enforce it abroad ( of course the procedure and tits time lenght to recognise the force of such decision will depend on each jurisdiction)

[OwnerInvest]

Originally Posted by DrQ

I am in the market for a mortgage in order to buy a property in the Algarve. I have recently read a couple of reports about people who purchased in Spain and subsequently defaulted on mortgage repayments. According to Spanish regulations the banks can pursue outstanding mortgage related debts against assets in the UK. As I understand it this differs to the UK where lenders are only able to seize the property itself that the mortgage was taken out to purchase.

Does anyone know how Portuguese law works here?

Regards

Hi

Having just contacted a local Portuguese businessman, who is considering a few rooms at Sesimbra Bay, he believes it is similar as the UK, most banks in Portugal ask for a UK guarantor / if not then agree his assets in the UK are at risk should he not maintain payments for purchasing property in Portugal, however, any Portuguese resident living over here cannot have UK assets touched, only Portuguese assets in that case.

If you need further assistance regarding this matter please do not hesitate to contact us or send me your details and I will have someone call you and discuss this in further detail

All the best

[lena green]

DrQ,

Go straight to Lloyds offshore to get your answers they are just about to pen in Portugal.
Rates are 6.25%. +/-


Your contact there is

M/s Sarah Markai
Business Development Manager

Tel.+350.560.00144
email sarah.markai@lloydstsb.gi

[Vitor Mota]

Hello
I´m Portuguese and owner of a real estate...i usually work with english clients so i have to deal with this issues since i have many contacts from banks here in Portugal...i can give you one hand in case you´re needing a mortgage.
my contact is +351 968992425.
My name is Vítor
mail: miraldomota gmail com

[lena green]

Hii Vitor,

Maybe you can help me, I amlooking for finance, not a mortgage to build property on land I own, could you contact me please 00351.967377059 or info....at...opipt.com