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Portugal Mortgages
Q. How much mortgage can I have to buy a
residential property in Portugal ?
In Portugal
there are no
non-status/self-certification mortgage facilities available (although
renting out your property is permitted), but minimum documentation lending
schemes for Self-Employed applicants, may now be considered on a
case-by-case basis by the Portuguese lenders
All full status Potuguese mortgages need to be supported by a minimum
requirement of proof of income, i.e. if employed - copies of your last three
month's payslips & copies of your latest P60/Employer’s Reference together
with copies of your last 6 month’s Personal Bank Statements will be required
or alternatively if you are self-employed - copies of your last three years
Audited Accounts & copies of both your last 6 month's Business and last 6
month’s Personal Bank Statements will be required on application.
A mortgage in
Portugal is
based on the mortgage applicants joint net “take home” pay and is calculated
on an affordability basis. All your existing liabilities including any
mortgage/rent payments, personal and bank loans and any maintenance (i.e.:
Divorce) payments together with your proposed Portuguese mortgage payments
must not exceed 40% of your net monthly income.
Example of a mortgage for Portugal:
Net joint monthly income £ 2,500 times 40% of that figure is £ 1,000 minus
existing monthly mortgage payment £ 300 – No other liabilities. This leaves
a balance of £ 700 for a proposed Portuguese Mortgage payment
Mortgage details for Portugal:
·
Maximum loan to value 80%
·
Maximum term 30 years
·
£20,000 minimum loan
·
Loans available in all major
currencies
·
Repayment and interest only
mortgages available
·
Rates from approximately
4.40%
details are subject to change, so you must check with your
broker on the link above before committing |
