Frequently Asked Questions
This section is dedicated to the most common questions we are asked by our clients about moving to Portugal or arranging a Mortgage in Portugal
80% of the Portuguese bank valuation is available, 70%-75% of valuation is standard.
Yes but only with dual UK and Portuguese borrowings. Any UK mortgage will need to be secured against an asset in the UK.
Yes
Yes - we will happily provide up to the minute rates upon request.
Yes up to 40% for "cash out" and up to 70% if looking to use the funds for property renovation, debt consolidation or further property purchase. All of these come with an interest only option if required.
You will need to allow for the Portuguese banks mortgage opening fee along with Notary and land registry fees. For existing / resale properties, notary fees are around 7- 8%. For new properties these are 4 - 5%. Land registry fees are typically around 1%. Bank fees vary from lender to lender and are available on request. All costs are quoted in writing before you proceed. All registry and notary costs will apply whichever bank in Portugal is selected. You should allow around 10% of the property purchase price to cover all purchase and finance costs that will be due. You should not decide whether to take your finance for your property in Portugal from Portugal or the UK until you understand the relative set up costs in full.
Yes but all set up costs of the new Portuguese mortgage will apply along with any calculation penalties on your existing loan. To make changes, other than value, to your Portuguese mortgage necessitates the existing mortgage being closed down. Further taxes and Notary costs may be prohibitive.
Realistically 4-8 weeks depending on complexity of case.
Approximately a week to 10 days.
At present this is not possible. All mortgage applications will require full documentation.
IMS will update you by phone, email or fax at key stages in the mortgage application process and will provide a courtesy update at least once a week.
If you are experiencing any difficulties with payments you should talk to your bank in Portugal immediately. As in the UK, if you do not communicate with them the bank in Portugal will start legal action.
For all initial guidance on level of Portuguese and total mortgage borrowing; written mortgage product quotes and general information there is no charge. If and only if you instruct us to submit a mortgage application on your behalf do we apply a fee. This fee is a flat rate of £ 650 for standard Portuguese residential mortgages. All Portuguese bank fees, tax and registry costs related to the Portuguese mortgage will be provided in writing.
In general most banks in Portugal like to see the mortgage completed by the time the applicant is age 70, although IMS have banks that will actually lend to the age of 80. We can get terms up to 30 years. For clients falling outside this UK lending against an UK asset may be possible as an alternative financing option.
Yes IMS has lenders that will accommodate a purchase made in an Company structure
Most Portuguese banks expect the client to have a current bank account with them along with buildings insurance. In the majority of cases life insurance is not compulsory. Some banks will look to impose a Mortgage Credit insurance for higher percentage loan to values.
Attractive headline interest rates can have compulsory products tied to them and the full cost of all products should be considered when assessing the mortgage against the mortgage of another bank in Portugal.
Currently the banks in Portugal are under no obligation to register your debt in the UK. The mortgage in Portugal will not show on your credit file in the UK.
In general most banks in Portugal assess your net not gross income and relate it to the actual monthly mortgage payments level. For most Portuguese lenders your monthly mortgage payments in Portugal should not exceed 1/3rd of your proven income minus tax and existing UK liabilities. Each bank in Portugal will have a slightly different view on how they underwrite and what papers they need to see. Some banks in Portugal will provide mortgages in Portugal with income ratios up to 45%. For Portuguese mortgage products providing higher income ratios you can expect to pay an extra margin above Euribor.
No Portuguese banks are not obligated to provide you with and operate under the regulation as laid out by the FSA. It is therefore extremely important you deal with an expert who can inform you in full of the drawbacks and benefits of financing in Portugal.
Yes, once your loan has been agreed, you will receive a formal offer form the bank.
Contact Us
Call us in Spain on
+34 902 517 007
or in the UK on
+44(0) 1462 481133
or contact us via this website.
Mortgages Available
Our non-resident Portuguese mortgage products include up to 80% loan to value.
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