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How can I afford to buy a property in Portgual
cash or mortgage?

Buying a property abroad is often viewed as a very complicated and intimidating process. This doesn't have to be the case! 

At Algarve Retreats our aim is to assist you every step of the way. 

If you require a mortgage as part of your purchase, finding the best possible options can be a daunting task. We work with the best brokers and banks to ensure that you are provided with detailed information about the different mortgage types that are available and assist you in securing the most cost effective deal.

If you have cash to buy your Portuguese home – either through existing funds or by remortgaging of your existing home – you need to look at the best deals available for currency exchange.

The first thing to note is that you won’t be able to take a mortgage from a UK bank to pay for a home that is outside of the country.  However, non-residents are permitted to take Portuguese mortgages against Portuguese property. An overseas mortgage broker based in the UK can help you search for the best deals from Portuguese banks.

If you are considering financing your property by applying for a mortgage , you will need a 20% minimum deposit with most lenders. As in the UK, the bigger cash deposit you have, the easier you will find it to secure a loan at a lower interest rate. Portuguese mortgage rates can be some of the lowest in Europe, although tend to based on the rate being variable as opposed to being fixed for a certain duration.

The Portuguese mortgage market is far slower than the UK’s and the process can be slightly more rigorous, so ensure you are organised before making your application as you dont get a second chance to apply.

Unlike other European countries Portuguese loans can cover work required on a property. You will need to prove your ability to pay the loan back. Rental income is not taken into account as this can be unpredictable.

Good advice is to borrow any money for your purchase in the same currency you intend to repay the loan in. This avoids currency fluctuations, which can make significant differences to your monthly repayments.