With many years of experience Somerset Mortgages provides an independent and comprehensive service to help you buy or re mortgage your property in Portugal. We work with all the Portuguese banks, the UK banks that operate in Portugal and a number of European investment banks. Working with so many banks allows us to offer you the best deal, whatever your circumstances.
We have a close working relationship with the banks in Portugal and due to the volume of business that we introduce, we are regularly able to offer lower interest rates and fees than you would normally be offered.
Find out how much you are eligible to borrow by completing our online quotation request form.
Instruct Somerset Mortgages to apply for the mortgage on your behalf.
Go to Portugal and find a suitable property.
Obtain a Fiscal Number (No. de contribuiente) & open a Portuguese bank account.
While in Portugal, sign a sales agreement (Contrato de Promessa de Compra e Venda) & transfer the deposit with Somerset FX to secure the property.
Lender instructs valuation.
Arrange buildings insurance. This can be provided by Somerset Mortgages.
Lender issues a mortgage offer. The bank or Lawyer registers the deeds at the Land Registry.
Arrange monthly mortgage payments with Somerset FX Regular Payment Plan.
We can arrange mortgages for individuals or companies to buy main homes; second homes; rental or investment properties; off-plan properties and commercial properties. Equity release mortgages are available.
All Portuguese banks will provide mortgages in Euros, but we can also arrange mortgages in other currencies such as US Dollars, Sterling and Swiss Francs.
Depending on the valuation of the property, non-residents can borrow up to 80% for purchases and equity release. All mortgages are subject to income but some banks will also take rental income into consideration.
Lenders calculate financial commitments (loans and rent) including the requested mortgage, as a percentage of stable pre-tax income. As a general rule the ratio should not exceed one third, but obviously this depends on the figures involved as the higher the income the higher the debt ratio can be. In fact, most lenders try to apply their rules with common sense and look at the actual amount of disposable income, not just the percentage.
The minimum loan amount that Somerset Mortgages will consider is €100,000.
The mortgage term can be from 5 - 30 years.
This is not mandatory, but recommended. Somerset Mortgages can help you arrange this at minimal cost.
Both capital repayment and interest only mortgages are available for both purchase and equity release.
The interest rate will depend on the currency of the mortgage. For example, if a Euro mortgage was selected then the EURIBOR (European Interest Offered Rate) would apply, plus the bank's margin.
This must be in place before completion and the lender will require the policy to be assigned to the mortgage. Somerset Mortgages can provide you with a quote.
You will be required to open a Portuguese bank account before completion. Somerset Mortgages can assist you with this at no additional cost, if required.
An Agreement in Principle can be obtained from a lender once all the requested documentation has been submitted. This takes approximately three working days. However, for loan amounts in excess of €750,000 this may take longer.
A minimum of six weeks should be allowed from application to completion.
Please be aware that missing a monthly mortgage payment may have serious consequences and we therefore strongly advise participation in the Somerset FX Regular Payment Plan. This service gives you peace of mind in the knowledge that your Portuguese mortgage repayments will be met automatically each month.
Mortgage funds will be released by the lender to your Notary for completion of the purchase.