Portuguese mortgage terms range from 5 to 40 years, are dependent on age and the lender involved. Most Portuguese banks will expect the mortgage to be repaid by age 80 but it is possible to obtain a mortgage in Portugal up to age 80.

• If we do recommend a Portuguese lender, the documentation supplied will always be in Portuguese, so if you're Portuguese isn't good you may want to stick with a UK lender. Maximum loan available is 90% of the loan to value (with no upper limit) from local lenders, 70% from UK lenders

• We can offer Currency Switch mortgages for the astute borrower, which allows you to switch the loan between currencies twice a year with no charge or more often for a fee.

• Foreign borrowers must obtain a Portuguese Fiscal Number, or Número Fiscal de Contribuinte as without it a bank account can not be validated or a mortgage application formally processed.

• Allow at least 12% of the purchase price to cover your purchase and finance costs in Portugal in full and that you make sure you are made fully aware of the provision of costs for completion by your lawyer. It is only possible to add these costs to the mortgage if, when added, they don't increase the mortgage above the maximum LTV advised by the lender.

• Affordability criteria vary from lender to lender, but Portuguese lenders will want to see that with the costs of the mortgage your monthly fixed expenses do not exceed 35% of your proven monthly income. No self certification is allowed.

• Generally foreign buyers are seen as higher risk by Portuguese banks, as the loan is generally not for your primary residence. Historically the default rate for holiday home mortgages was higher than those on primary homes. If it is for your primary residence then we will ignore the UK lenders and focus on the Portuguese, as they cater better to that market.

• Both variable rate and fixed rate repayment mortgages are available, but interest only mortgages are limited to a 3-5 year duration. Mortgages for self -build, renovation and re-mortgages for capital raising are available in Portugal. Life insurance is often a condition of offer from local lenders who will insist you buy it from them.

Property purchase in Portugal is a regulated process. Once you’ve sourced a suitable mortgage and found the right property make a formal offer through the selling agent.

• Notary & Registration Fees: Normally approximately 2.0% of the property purchase price.

• IMT (Municipal Property Transfer Tax): Charged on a sliding scale based on the type of property purchased and value (Your lawyer will calculate this for you)

• Imposto do Selo (Stamp Duty): 0.6% of the mortgage value

Once a purchase price is agreed with a vendor both parties will sign a Contrato de Promessa de Compra e Venda (Promissory Contract) and pay deposit of usually between 10%-30% of the purchase price. It is at this point that you will require the services of a properly qualified property lawyer/solicitor who speaks your language. It is our experience that it is often advantageous to engage the services of a good lawyer/solicitor prior to the signing of any Promissory Contract to ensure that the property you wish to purchase is free of debt, restrictive clauses and in the case of land purchase that you are able to build on the land.

Your deposit will be forfeited if you do not proceed with the purchase for any reason. The vendor will forfeit double the deposit paid, if unable to proceed with the sale or withdraws from the sale for any reason. A property transfer tax called Imposto Municipal Sobre Transmissões (IMT) formally called SISA is payable on a sliding scale before the ‘escritura de compra e venda’ (property deed) can be drawn up by the lawyers. Your lawyer/solicitor will calculate the amount payable for you. The balance of the purchase price and all other outstanding fees and taxes such as ‘Imposto de Selo’ (Stamp Duty) are paid on completion at a notary advogado when both the vendor and purchaser sign the ‘escritura de compra e venda’ (property deed) at a notary’s office. It is possible to give your lawyer power of attorney to sign of your behalf if you are unable to be in Portugal at this time.