Mortgages
Types of property
Finance is available for the purchase of freehold land and buildings, apartments and houses in Portugal. Stage payments will also be considered.
The applicant
The Bank will satisfy itself that an applicant is in a financial position to be able to meet the conditions of the loan which will be based on ‘‘affordability’’.
If an applicant is self-employed, an application must be accompanied by audited accounts for the previous three years together with the current year’s management or unaudited accounts, satisfactorily certified by an accountant acceptable to the Bank.
Mortgage products
The Bank will usually consider lending up to 75% of the valuation of the property, but no more than the purchase price, with a minimum loan of GBP 75,000 or the foreign currency equivalent thereof.
Loans are available in CHF, EUR, GBP and USD. Interest will be charged at a margin over the Bank’s mortgage loan rate applicable to the currency borrowed.
The bank currently has four main mortgage products available
Click here for further information
Security
When lending to an individual the Bank will require a first legal mortgage over the property and will recommend an assignment over a suitable life policy.
When lending via a company (which the Bank requires to be managed by a specialist management company from its approved list) the Bank will require a charge over the shares of the company, and will recommend an assignment over a suitable life policy. In certain circumstances, the bank may lend to a company, and will then require a first legal mortgage over the property, together with a personal guarantee of the ultimate beneficial owner.
It will also be a condition of the loan that the property is insured for its full replacement value and the Bank’s interest noted thereon.
If required, the Bank can effect introductions to its Insurance Brokers.
Valuation of property
Approval of any loan application will depend upon the Bank’s valuers providing a favourable report on the property, the cost of which will be borne by the applicant.
Costs
Costs associated with the Mortgage
With each application the Bank will require:
i) A processing fee of GBP250 which is non-refundable.
ii) A valuation fee of GBP250, which will be refundable if the application is declined prior to a valuer being appointed.
Upon acceptance by the applicant of the Bank’s Offer a cheque covering the following must be given:
i) The Bank’s arrangement fee of 0.25% of the amount borrowed (minimum GBP250)
ii) The Bank’s legal costs which will be dependent upon the type of borrower as follows:
If an individual: GBP 1,600.00
If a company: GBP 1,200.00
If a mortgage is to be registered over the property, mortgage stamp duty, notarial fees and land registration fees will be payable.
Procedure
Once an application has been approved by the Bank and the terms and conditions have been offered and accepted, all legal documents will be prepared by the Bank’s lawyers with all legal fees to be borne by the applicant.
To request an application form, click here.
Full written quotations are available on request.
Your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it.
Where a loan is arranged in a foreign currency the sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements.
Authorised by the Bank of Portugal and regulated by the Financial Services Authority for the conduct of UK business. The Financial Services Authority does not regulate loans secured on overseas properties.
* This calculator is only an indicator of the monthly payments you could make.
* It is not a quotation.
* Weather information from bbc.co.uk.
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