The banks will take the following two criteria into consideration when analysing your mortgage file for approval: Financial strength and Property valuation.
These are the determining factors when it comes to qualification and rates for a Portuguese Mortgage.
Your income. The bank will require proof of your current earnings such as salary income, dividend payments, investment income, pension income and rental income. This information will help the lender to ascertain if you can comfortable afford the monthly cost of your Portuguese mortgage. The banks consider the net income of each applicant that is confirmed by pay/pension slips, tax return and bank statements.
Your existing debts. The lender will require confirmation by way of a credit report or loan/mortgage statement in order to analyse your monthly fixed commitments for existing liabilities such as mortgages, personal loans and credit cards.
Your employment history. The lender will require proof of your current employment in form of an employer's reference letter. If you are self-employed the bank will require information about your company, confirmed by your accountant.
Your credit history. The bank will require a credit report from your country of residence (if available) and will also carry out a check with the Bank of Portugal for any existing liabilities in Portugal.
Property valuation. The bank will commission an independent engineer to value your property. The banks are currently lending between 60-80% of the valuation price. Quinta Finance will liaise with your appointed key holder and arrange a visit to the property for the engineer. We will also arrange for all necessary property documentation for the bank.
Whether you have just set out on your journey to find a property in Portugal, or if you have already set your mind on a property, contact Ideal Homes Portugal and we will begin to guide you through the process of finding the appropriate mortgage in Portugal for your needs. Contact us on the form to the right to receive additional information about a mortgage in Portugal.