# Mortgage



## pfellows (Jun 22, 2012)

Hi, I've just joined the forum and this my first post. I am in the process of trying to buy a property in the Vilamoura area and I am about to apply for the mortgage.
From what I have seen so far , the interest rates in Portugal seem to be quite high.
Does anybody have any advice on which bank would offer the best rates and mortgage products?
Thanks for any help you can give me.


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## canoeman (Mar 3, 2011)

Best of luck, they seem very reluctant to give any mortgages at the moment, I'd try through the Estate Agent if your using one as they have vested interests in finding one for you, plus they know the local people a great help when your trying to borrow money, personally with the current problems throughout EU and UK? I would only buy if I had the cash and would not buy with a mortgage for a second/holiday home?


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## Frank Wilson (Jul 15, 2010)

_"I would only buy if I had the cash and would not buy with a mortgage for a second/holiday home?"_

*Agree 100% with Canoeman's statement. *


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## robc (Jul 17, 2008)

Frank Wilson said:


> _"I would only buy if I had the cash and would not buy with a mortgage for a second/holiday home?"_
> 
> *Agree 100% with Canoeman's statement. *



Agree completely with Canoe and Frank. 

On my way to a well known complex not far from here I pass rows of For Sale boards on houses where the owners have had their property "recovered" shall we say. This has made the Banks very wary, I am told that PT citizens struggle to get a mortgage, an ex pat will find it possibly even harder.

Rob


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## pfellows (Jun 22, 2012)

Frank Wilson said:


> _"I would only buy if I had the cash and would not buy with a mortgage for a second/holiday home?"_
> 
> *Agree 100% with Canoeman's statement. *



Hi,

Thanks for your answers so far - even if they are a bit depressing.
We are not buying a holiday home, we are actually planning to move to Portugal next year. 
We planned to buy the Villa in Portugal now with a local mortgage and then will be selling our house in the UK which will give us a lot of equity back.


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## Frank Wilson (Jul 15, 2010)

pfellows said:


> Hi,
> 
> Thanks for your answers so far - even if they are a bit depressing.
> We are not buying a holiday home, we are actually planning to move to Portugal next year.
> We planned to buy the Villa in Portugal now with a local mortgage and then will be selling our house in the UK which will give us a lot of equity back.


Why not take a UK mortgage then (or extend if you already have one) against the value of your UK property and then pay off a lump sum when / if you sell your UK property.

The advantages being the equity in your existing house if a considerable amount would almost guarantee you a UK mortgage, and you won't have the language barrier and other complications plus although I never borrow money looking at the paltry interest I am getting on my savings I would imagine the lending % will not be that great in the UK.


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## canoeman (Mar 3, 2011)

Wouldn't you be better getting a UK bridging loan, sorry if it's depressing but I'd sell your house first, having a short term mortgage here is not that cheap as there are different costs involved to the UK, as the lender is a part owner of your property here they have to be present at purchase and then removed when mortgage settled, I'd make a point of finding out those costs, probably no one would mention them as they'll presume you understand the Portuguese system.


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## Martins (Jun 22, 2012)

Santander Totta is my actual bank, and they ask for 3,25% spread on the house loans.

It is also one of the banks in Portugal, that didn't ask the government for financial support, so I believe they are solid at the moment.

Anyway, I think it's much, much more easier for a UK emigrant come to Portugal, ask for a loan to buy a house and get it, than a Portuguese ask for a loan and get it.
Just for the fact you're from UK to the Portuguese banks it's already considered as a sign that you've got money.


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## robc (Jul 17, 2008)

Martins said:


> Anyway, I think it's much, much more easier for a UK emigrant come to Portugal, ask for a loan to buy a house and get it, than a Portuguese ask for a loan and get it.
> Just for the fact you're from UK to the Portuguese banks it's already considered as a sign that you've got money.


I am sorry but I would totally disagree. 

My wife and I are both retired, both on good pensions, house in UK worth plenty, loads of equity......approx 3 times the value of our house in Portugal and we could not get a mortgage to suit in Portugal.

We released the money via a mortgage in UK. You have to be either eternally optimistic or masochistic to want to go through the agony of the mortgage process in Portugal.

Rob


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## Martins (Jun 22, 2012)

robc said:


> I am sorry but I would totally disagree.
> 
> My wife and I are both retired, both on good pensions, house in UK worth plenty, loads of equity......approx 3 times the value of our house in Portugal and we could not get a mortgage to suit in Portugal.
> 
> ...


I believe that the only problem with the process was your age, but it's just a opinion, I'm not an expert in banking stuff.

For example, I've got a friend that works in Portugal, single and earning about 1000€ per month, and the bank gave him a loan of 60.000€ to buy a apartment.
It is a loan of 40 years and he's 25 years old, he doesn't have any fixed expenses, besides the house loan.

If you have 50 years old and ask for a loan for 20 years, or 40 years, I believe it's almost impossible to get a loan in that case.


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## robc (Jul 17, 2008)

Martins said:


> I believe that the only problem with the process was your age, but it's just a opinion, I'm not an expert in banking stuff.
> 
> For example, I've got a friend that works in Portugal, single and earning about 1000€ per month, and the bank gave him a loan of 60.000€ to buy a apartment.
> It is a loan of 40 years and he's 25 years old, he doesn't have any fixed expenses, besides the house loan.
> ...


I disagree regarding the age.

I am an expert in Banking stuff as that is what I did until I took a handshake from the City of London and retired at 45, maybe it was because my wife was the Director of a large Building Society and was given early, and I mean early retirement on full pension as well.

Maybe it was because we fell in to the criteria of having a repayment mortgage with a term comfortably inside the lending parameters. As you will find, the parameters change almost daily. Perhaps when they said repayment mortgage they really meant interest only..............etc. etc.

You will also find that the LTV% will change at a moments notice, as will the repayment term, as will the arrangement fees, as will the especialidades you will need to present (when I say you, I mean you or your seller)..................I could go on.

The amount earnt per month bears no relevance to the mortgage amount, it is the affordability which matters, typically about 35% of NDI, but also subject to change no doubt.

Given what may possibly befall Sovereign states currently attached to the Euro you may want to rethink your strategy regarding affordability.

Either way, get some good solid advice, and do not rely on hearsay and friends.

Rob


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## canoeman (Mar 3, 2011)

Equally a friend has lost the sale of her house here to two separate Portuguese couples who where both turned down for mortgages of lesser amounts despite having in one case a substantial deposit and both having guarantors, age I don't believe comes into it as an English retired couple 60+ I know got a standard mortgage here to complete a purchase, think your friend extremely lucky to get a 60,000€ mortgage on 1,000€ pm salary maybe before current crisis


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## andyp65 (Sep 22, 2009)

I have to agree with robc and canoeman on this, i deal with mortgages on a daily basis and it is not easy, my clients are forever jumping through hoops, they provide everything that is requested and then the goalposts are moved, if you are able to sort out from the UK then my advice is to do that. All the banks over here have huge amounts of repossessed houses on their books and they do not want to increase this figure so they are being cautious to say the least on who and where they are lending.


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## joanariv (Feb 6, 2014)

i suggest just using a broker. there are so many out there now that offer international finance help. interest rates are currently very low for portugal so now is a better time than any. if you need further advice have a look at this website 

overseas-mortgage
.co.uk
/portugal-mortgage.html


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