Location: Mainland Portugal and Cape Verde
Type of Loan: Repayment or interest-only for purchase, remortgage or capital raise, stage payment financing is also available.
Loan to Value: Varies from lender to lender, for non residents 80% of the valuation is achievable for purchase and 75% for refinancing.
Term: 5 to 30 years up to age 80.
Interest rates: Please contact IMM for a personal quote
Proof of Income: This is always required by lenders. Minimum documentation schemes for self-employed applicants are available. Please contact IMM for further details.
Fees: Portuguese bank fees are normally fixed amounts and are usually around 750Euro. Other costs imposed by the lender include, predial registration and notary registration for the purchase and Portuguese mortgage. These normally come to under 800Euro. Notary charges, which cover Stamp Duty, administrative and registration costs for the notary's time. These are usually 1% of the purchase price and Legal charges depend on the loan amount and on the Montante Declarado Para Escritura (declared purchase price) but you should allow for 1.5% to 2%.
Legal issues and Valuation
Remember: don’t sign anything or put down a deposit until you have taken legal advice. Your lawyer will be able to extensively cover the legal costs and taxes you are liable for prior to committing yourself to a purchase or remortgage. Buying property in Portugal is a regulated activity. The contract - contrato de promessa de compra e venda - is agreed and signed. You must put down a deposit of 10-30% of the purchase price; if you pull out, you may forfeit this. If the vendor withdraws from the sale, they may have to pay you twice the sum they received as a deposit. The balance of the purchase price and all fees are payable on completion to the notary advogado. Both you and the vendor sign the escritura de compra e venda at this point – the definitive contract equivalent to the property deeds. IMM will liaise with your lawyer throughout the process. We will obtain the necessary documents from your lawyer to facilitate the loan and enact the valuation.
Applying for a Mortgage
Please contact us as soon as possible to arrange an approval in principle. This will enable you to find out how much you can borrow and obtain initial terms. If you haven't found a property that you want to buy we can help you to establish your affordability and issue an approval in principle based on your current financial situation. See Useful Terms for an explanation of some legal terms.
Please feel free to contact us europe@intl-mortgage.co.uk or request a quote
