Portugal bounced back quickly after the referendum as the Golden Visa Scheme has done much to invigorate the housing market and Lisbon and the Algarve are classed as prime locations.
Availability and the competitiveness of lending depend on the ownership structure. If the purchase is in the name of an offshore company there is only one option and rates are high. For touristic licences there are also limitations and a maximum LTV of 50 to 60 per cent may apply. Where individuals are buying in their own names rates and margins are on a case-by-case basis but have fallen considerably over the last year or so.
Private banks withdrew en masse from Portugal post-2008 but it is hoped there will be new banks looking at this market this year. For classic purchases in individuals’ names a maximum LTV of 70 per cent can be available. Loans are always on a repayment basis with an option of variable and fixed rates. Long-term fixed rates of up to 25 years are competitively priced.
It is worth bearing in mind that Portuguese banks do not lend to clients post-completion and UK banks can’t take a charge on property in Portugal so the only time to take a mortgage is at the time of purchase.