&lt;p&gt;&lt;em&gt;Nicholas Martins from Ideal Homes Portugal’s &lt;a href=&quot;https://www.idealhomesportugal.com/portugal-mortgages&quot;&gt;mortgage&lt;/a&gt; department, updates us on the current market in Portugal, best rates you can secure right now, and what else to look out for in 2023.&lt;br&gt;&lt;br&gt;&lt;/em&gt;&lt;/p&gt;
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&lt;p&gt;&lt;strong&gt;Nicholas, first things first, can you tell us a little about yourself and your role?&lt;/strong&gt;&lt;strong&gt;&lt;br&gt;&lt;/strong&gt;Hello, yes, I’m Nicholas, and I’m the Mortgage Supervisor at &lt;em&gt;Ideal Homes Portugal.&lt;/em&gt; Personally, I have 16 years’ experience of the Portuguese mortgage market, and I now head up the in-house mortgage brokerage here at Ideal Homes.&lt;br&gt;&lt;br&gt;We’re licensed and approved by the Bank of Portugal, and work with all the key Portuguese lending banks, to make sure we can pick the best mortgage deals for our clients from across the whole market.&lt;/p&gt;
&lt;p&gt;Our advice isn’t limited only to Ideal Homes clients - we can provide mortgage assistance to anyone in Portugal, and we work with many clients who have already found a property elsewhere. (Of course, if you find a property with our real estate team, and I am helping with your mortgage, that can make life simpler for everyone!)&lt;/p&gt;
&lt;p&gt;&lt;br&gt;&lt;strong&gt;Why is it better to use you rather than going to lenders direct?&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;There are several good reasons to work with us. As mentioned already, we have relationships with all the key Portuguese lending banks, including Caixa Geral de Dep&#243;sitos (CGD), Santander, Novo Banco, Uni&#227;o de Cr&#233;ditos Imobili&#225;rios (UCI) and Banco Portugu&#234;s de Investimento (BPI). This means rather than trying to navigate through individual lenders yourselves, we can cherry-pick deals for our clients from what’s available across the whole market.&lt;br&gt;&lt;br&gt;Then, me and my team offer local bi-lingual expertise. Getting your application right from the outset is key to securing the right mortgage. We know what needs to be done for a successful application and we will complete all the relevant paperwork and match your financial profile with the most responsive lenders. &lt;br&gt;&lt;br&gt;When you work with us, you’re also engaging a larger service team, as we have real estate experts, lawyers and notaries on hand from Ideal Homes who will all help, if needed, to ensure each client’s purchase completes smoothly. &lt;br&gt;&lt;br&gt;Lastly – it’s worth remembering, we don’t charge you for our mortgage service – we get paid by the lenders.&lt;/p&gt;
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&lt;p&gt;&lt;br&gt;&lt;strong&gt;How fast can you get me an agreement in principle?&lt;/strong&gt;&lt;strong&gt;&lt;br&gt;&lt;/strong&gt;Typically, within 20 minutes of receiving a new client’s initial enquiry form, we can provide a pre-approval agreement in principle (AIP). &lt;br&gt;&lt;br&gt;This gives you an idea of budget and is enough for you to start looking for a property.&lt;br&gt;&lt;br&gt;When it comes to getting a formal approval from a lender, we will only make an application when we are confident it will be successful. Since the start of the new year, only one of ours has been rejected out of around 50! &lt;strong&gt;&lt;br&gt;&lt;br&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;Who are your typical clients right now?&lt;/strong&gt; &lt;strong&gt;&lt;br&gt;&lt;/strong&gt;We help a range of foreign nationals but currently the largest proportion of our clients are American. A number of factors are driving the US market. Mortgage rates are significantly lower in Portugal than the US, which suits investors especially, then there is the climate, affordable coastal homes, lifestyle and culture. And compared to other European countries, purchase taxes are lower, while new residents can sign up to the Non-Habitual Regime and slash their annual tax bill.&lt;br&gt;&lt;br&gt;Turning to the UK and wider European market, interest from typical middle-income clients has dropped off a bit as the cost-of-living crisis is causing people to proceed cautiously. But we are seeing increased demand at the top end of the market. So we’re getting fewer applications, but many of them are higher value. &lt;br&gt;&lt;br&gt;&lt;strong&gt;Is it still easy to get a mortgage in Portugal?&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Yes. Criteria now are a tiny bit tougher compared to two years ago, as in most countries, but I’d say it’s as easy - if not easier - for Americans and British to get a mortgage in Portugal than in their home countries. &lt;br&gt;&lt;br&gt;The key things Portuguese lenders consider when assessing your eligibility are your total income, your other liabilities, such as car loans or existing mortgages, credit history and of course the value of the property you wish to buy.&lt;/p&gt;
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&lt;p&gt;&lt;strong&gt;&#160;&lt;br&gt;&lt;/strong&gt;&lt;strong&gt;What sort of deals can you get at the moment (January 2023)?&#160;&#160; &lt;/strong&gt;&lt;br&gt;Portuguese mortgages come with lots of options. Our most popular products now are mixed rates, which allow borrowers to fix their rate for a set period before reverting to a variable rate (pegged to the Euribor) for the remainder of the term. &lt;br&gt;&lt;br&gt;For example, for a 30-year term, we could fix a rate of 4 - 4.2 per cent for 10 years before reverting to a variable rate for the remaining 20 years. &lt;br&gt;&lt;br&gt;Turning to other products, currently we can get variable rates of 3.65 per cent, while fixed rates of 4.5-4.6 per cent are achievable. &lt;br&gt;&lt;br&gt;As a rule, lenders today offer up to 70 per cent loan to value, but 80 per cent is available in some cases. &lt;br&gt;&lt;br&gt;The length of term is flexible, but most clients opt for 20-25 years. All mortgages are repayment only and the age limit for getting one here is 75.&lt;/p&gt;
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&lt;p&gt;&lt;strong&gt;Can you help clients pre-construction?&lt;/strong&gt;&lt;strong&gt;&lt;br&gt;&lt;/strong&gt;Actually, we are currently talking to banks about financing options for off-plan clients, so watch this space! &lt;br&gt;&lt;br&gt;&lt;br&gt;&lt;strong&gt;&lt;em&gt;Thanks for your time Nicholas. We’ll be checking in regularly this year for updates on mortgages in Portugal regularly – see you next time!&lt;br&gt;&lt;br&gt;&lt;/em&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;&lt;em&gt;In need of mortgage advice? Visit our main &lt;a href=&quot;https://www.idealhomesportugal.com/portugal-mortgages&quot;&gt;mortgage page&lt;/a&gt; and enquire using the form, and Nicholas or one of his associates will be in touch.&lt;br&gt;&lt;br&gt;&lt;/em&gt;&lt;/strong&gt;&lt;/p&gt;
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Portugal Mortgage Outlook 2023 - Questions & Answers

Nicholas Martins from Ideal Homes Portugal’s mortgage department, updates us on the current market in Portugal, best rates you can secure right now, and wh