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.
