How to Get a Mortgage in Portugal

As Portugal has such a well established property market that is relatively transparent and backed by excellent legal processes, many banks are happy to lend to those planning on buying a home in Portugal - from local Portuguese banks to international banks - and even British banks such as Barclays have a strong lending presence in Portugal.

The choice of lender is broad and the choice of mortgage even wider however the lending process is slightly different to what those in the UK are used to for example, furthermore, Portugal has its own rules and regulations relating to what can and cannot be lent and who can and cannot borrow – therefore this is our guide about how to get a mortgage in Portugal for all those interested in exploring their options.

The first thing to note is that the majority of mortgage lenders and banks will not consider lending for the purchase of what are classed as ‘rustic’ properties – this is basically real estate in very rural and mainly agricultural areas.  The good news is that it is possible to get a remortgage on an already existing Portuguese property, it’s possible to borrow to buy a principal or second/holiday home even if it is currently off-plan and it is also possible to get a mortgage to buy land and self build.

One of the most dynamic names in the mortgage market in Portugal is Barclays Bank.  They have had a presence in Portugal for twenty years, they have English speaking advisers nationwide and they have even developed a unique range of home loan facilities for those hoping to buy property in Portugal.  They have available highly competitive variable rate and interest only products and they also have an exciting new mortgage called a ‘leasing product’ which allows eligible borrowers to borrow more (up to 80% of the valuation price) and for longer (for up to 30 years).  Click here to find out more, complete the short form and Barclays will call you back.

Generally speaking most mortgages in Portugal are available for between 5 and 20 or 25 years, although as stated Barclays have a finance option that extends the loan period to up to 30 years.  Most lenders will consider lending on up to 70% of an existing or off-plan property’s valuation and up to 40% of a land valuation and 70% of the total valuation excluding the land valuation for those looking to buy land and self build in Portugal.

When it comes to determining a potential borrower’s eligibility for a particular mortagage most lenders apply the same criteria.  They take into account the borrower’s income, their outgoings, their age, credit history etc., and proof of address, identity and earning will all be required.

If you’re looking around for the best mortgage product or you just want to speak to a financial adviser about your options relating to getting finance to purchase property in Portugal at this point then why not contact Barclays via their short form and an adviser will call you back.