Overseas Finance

Property Finance in Portugal

Overseas Mortgages Direct's Guide to Property Finance in Portugal.

At a glance:

	Mortgage	Refinance	Equity Release	Buy to Let
Maximum Loan to Value	80%	70%	40%	N/A
Maximum Interest only period	5 years	2 years	0	N/A
Maximum term	30 years	30 years	30 years	N/A
Maximum age on completion	80	80	80	N/A
Average interest rates	4.7%	4.7%	4.7%	N/A
Average monthly price per thousand	5.10	5.10	5.10	N/A

Process:

Portuguese banks are among the most competitive in Europe and offer very favorable interest rates and loan to value ratios. Approvals are only issued after the habitation licence, which may occasionally be delayed in the town hall, but generally the process should take no more than 6 weeks.
Approximate timelines (weekends not included):

1.	Approval in principle	Instant
2.	Final licenses	Day 1
3.	Property registration details	Day 1
4.	Application (receipt of documents)	Day 1
5.	Power of attorney	Day 1
6.	Confirmation of approval in principle	Day 3
7.	Valuation	Day 6
8.	Formal offer	Day 10
9.	Arrange signing	Day 15
10.	Signing	Day 20
11.	Transfer of deeds	Day 20
12.	Payment to developer	Day 20
13.	Agency of service	Day 20
14.	First mortgage payment	Day 21
15.	Commission received	Day 21

Costs:
For guidance purposes, as costs vary from lender to lender:

Cost	Amount	Payable
Application / bank fees	€900	Up front (refundable)
Valuation fee	€800	Up front (refundable)
Opening Commissions	N/A	N/A
Registry / Notary fees	0.75% of purchase price	On signing
Agency of service	€120	Annually on signing date

Currencies:
Portugeuse mortgages are available in Euros.

Source: Overseas Mortgages Direct