Mortgages in Portugal are available from companies that are registered and licensed introducers to the main lenders, the banks.
All companies, such as OFS-Portugal are vetted prior to being given a contract to act on behalf of the banks. At OFS-Portugal we have agreements with a number of banks, some of who have offices in the UK, to allow us to find the best lending source for your purchase.
The Portuguese banks will usually lend up to 75% of the property valuation, (not necessarily the purchase value). Borrowing above 75% is available, however the rate of interest will reflect the considered additional risk that they envisage.
Borrowing from a Portuguese bank does have the advantage that the base rate will normally be 1-2% below the UK base rate, however it must be remembered that the exchange rate of the £ to the € must also be taken into consideration.
Borrowing rates are normally between 0.5% and 1.5% over Eurobor base rates. Higher rates may apply to specialist lending.
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Where the intention is to purchase a plot of land, or funding is required for building on land already owned then staged borrowing, sometimes with deferred interest payments is also available with regular re-valuations to allow borrowing to remain within the agreed, value to borrowing percentage rate.