Mortgages in Portugal from British Banks

Because few local Portuguese lenders will lend to foreign nationals you need a British bank to get a mortgage

Portugal continues to be one of the most popular destinations for Britons seeking a holiday home in the sun, a retirement home in a safe and peaceful location, an investment property or just a brand new home in an exciting and beautiful country.

The buying process is simple, there is an abundance of property opportunity in Portugal, the climate is fantastic but what there is not a plethora of in Portugal are local lenders willing to offer real estate financing to foreign nationals.  So, the solution is to seek mortgages in Portugal from British banks…in this article we examine the appeal of the nation, the buying process and getting the finance you need simply and easily via a UK bank.

Accessibility

The majority of visitors to Portugal travel to Faro airport which is really the gateway to the Algarve and the most popular parts of Portugal.  You can get cheap flights from the likes of Monarch and EasyJet into Faro.  The other alternative is to use the airport in Lisbon to which BA flies daily – this airport is becoming more frequently used now that the Silver Coast region of Portugal is proving popular with property hunters.

If you’re buying property in Portugal to be used as a holiday home or you’re purchasing real estate as a jet to let type investment it is critical that it is easily accessible – so think about buying within one hour’s drive time of either airport mentioned.

Climate

The climate in southern Portugal in the Algarve region is by far the best and most temperate – in the summertime the coast is cooled a little by sea breezes which takes the edge of the very high temperatures that the Algarve can sometimes experience but overall, the temperature never wanders too far away from 25 degrees centigrade in the summer and about 10 – 14 in the winter. 

Inland these average temperatures are a little higher in the summer and cooler in the winter and the further north you go the winters can be a bit harder.  If you’re going to be living in Portugal full time it’s likely you will need some form of central heating for the winter nights no matter where you choose to buy your Portuguese real estate.

Portuguese Property Hotspots

There are no two ways about it – the Algarve is of course the most popular part of Portugal for property hunters and tourists as well.  This part of the country has golf courses aplenty, stunning beaches, fantastic amenities, great cuisine, many bars and restaurants and quite frankly it’s a wonderful place to visit or live.

But – the appeal has led to property prices going through the roof and so now more people are moving further up along the coast to the Silver Coast to find more affordable property opportunities.

Other Portuguese property hotspots include Lisbon which is a brilliant capital city – not too big to get lost in but not too small to get bored in!  It’s packed with historic and cultural delights and it’s close to some great beaches too.

Buying Process and Getting Mortgages in Portugal from British Banks

To buy property in Portugal you first have to get a tax card and a fiscal number but any lawyer or estate agent will help you do this as soon as you start looking for properties for sale.

The next most important thing you have to do is get your mortgage to buy property agreed in principle so you know exactly how big your budget is – I cannot stress how critical this is!  If you don’t know how much you have to spend how on earth are you going to find the right property?  You could find an ideal home only to discover you can’t afford it – so, get your mortgage agreed up front at least in principle.

As stated earlier in this article few if any local Portuguese lenders will lend to foreign nationals – but for those seeking mortgages in Portugal the good news is that British banks will lend on the property in Portugal.

Barclays Bank is the main lender for Portuguese property – they have had a local presence in the nation for many years, they have branches across the country, they have staff fully trained in all aspects of the Portuguese banking and lending process who also comprehensively understand British requirements when it comes to securing finance to buy.  So, to get the ball rolling straight away click here to contact Barclays Bank today about your interest to buy property in Portugal.  Complete the short form you are redirected to and Barclays will simply call you back and talk and walk you through everything you need to know and do.

With your mortgage agreed in principle, you tax card and fiscal number to hand – get a lawyer!  You will need one to look after your best interests – then you can engage the services of an estate agent if you haven’t already done so to help you find a property, negotiate on your behalf and guide you through the paperwork and red tape associated with buying property in Portugal.

Finally, don’t forget to sort your Portuguese mortgage out up front before you make an offer.  And in terms of fees - legal fees can be up to 2%, deed registration 1%, a survey will cost up to EUR 1,000, utilities connections can cost a further 1% and Stamp Duty is around about 6%...check these figures with your lawyer and estate agent though as they are subject to change.