Mortgages in Portugal

In Portugal, mortgages are readily available to the non-resident purchaser who wishes to buy property and generally, a borrower is able to borrow up to 80% of the property valuation, over a term of up to either thirty years or to age 75, whichever is the shorter.

Most mortgages here offer a variable rate on a capital repayment basis although some lenders offer an option to pay interest-only for an initial period of up to three years. We have access to all the major banks in Portugal and are able to source the most appropriate mortgage available to you, depending upon your individual circumstances.

Mortgage approval in Portugal is carried out in three stages:

1. A financial assessment is made to establish the applicant’s ability to service the loan.
2. When the loan is approved, an independent valuer is instructed by the bank to carry out a valuation of the property and to report to the bank.
3. Subject to a satisfactory outcome to stages 1 and 2 above, a formal mortgage offer is made.

If you would like our in-house mortgage broker to identify a suitable mortgage for you  please complete the Contact Us form and supply the following information for each applicant :

• Full name(s) and date(s) of birth.
• The gross annual income from all sources.
• The outstanding balance of any mortgages or loans that are currently in existence, together with the monthly payment in respect of each mortgage or loan.
• The proposed purchase price of the property and the amount of mortgage that is being sought.

Once this information is received, we will be in a position to approach the various lenders with a formal enquiry. Shortly afterwards, we will be able to  provide an illustration (known in Portugal as a “simulation”) of the most appropriate mortgage option available to you, together with an indication of the monthly payments.

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