Mortgages in Portugal

100 Percent Mortgage

In certain circumstances, it is possible to borrow up to 100%  of the agreed purchase price. This lender will offer a mortgage deal of 80% of a standard valuation. If the property is substantially discounted, then the bank will consider lending 100% of the purchase price.

This mortgage is available for non-residents of Portugal. Our example demonstrates indicative mortgage conditions for a borrowing of up to 100% LTV.

Example:

  • Property Bank Valuation: EUR 250,000
  • Property purchase price: EUR 200,000
  • Loan amount: EUR 200,000
  • LTV (loan to Value): 80%
  • Term of Mortgage ( Max 30 yrs): 30 years
  • Maximum age of applicants on final loan repayment: 75 years old
  • Type of Mortgage: Interest only for first 3 years. Capital repayment mortgage for the remaining term of the loan.
  • Interest rate (Variable interest rate): 3M Euribor +2.50% (currently 0.71% + 2.50%= 3.21%)
  • monthly payment over 27 years: €924 pcm
  • monthly payment over 20 years: €1130 pcm
  • monthly payment over 10 years: €1951 pcm
  • Early Redemption: Total early redemption and partial redemption: 0.5%

Comment: If you have found a bargain property and can’t resist buying it, then this could be the mortgage for you. Please contact the mortgage supplier here for more information.

For such a large loan percentage, the interest rates compare very favourably, especially when compared with the neighbours, Spain. This loan is very flexible.

This information should only be used as a guide. All product specifications will depend on the individual’s financial circumstances. The products mentioned here are for non-resident clients, other products will be available for residents. Information correct as of 28/06/10.

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Mortgages in Portugal
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