MORTGAGES AND HOW THEY WORK?

    It is now quite easy and hassle-free to get a mortgage from one of the local Portuguese/Spanish banks. You can acquire loans for purchase, renovation, construction etc.

    Based on a normal application form they offer from 65-90% finance in relation to the surveyed value of the property, which the banks use as collateral.

    You will be asked to supply the normal documents such as: Salary slips, IRS- form, ID papers, health report etc.

    Based on your initial application form, the lender will come back to you within 24-48 hours with a “preliminary” YES/NO. Thereafter, it will take approx 2-3 weeks to get the official/written YES/NO.

    The local rates are varying from 0.25 – 1.25% above the EURIBOR rates, which are normally lower than offered by offshore and UK banks, which can charge up to 2% above EURIBOR.

    The loans can be arranged from 1 – 30 years as it fits the individual’s needs. One can also make arrangements for an “interest-only” loan.

    Another and newer form of lending is by LEASING. There are certain advantages to this form of loan, which your banker or accountant can brief you on.

    Of course, you can still go through the normal route by lending money from a UK bank, but they generally do not regard the overseas property as collateral, which means you have to bring other securities to the table.

    Anyway, whether you choose, to go the “home-banking way”, use offshore facilities or make use of the local banks, Manorpark will be delighted to assist you through every step until your property is secured.