Bank lending available for property in Portugal

  • 12 years ago
  • Uncategorized

 

A leading overseas mortgage
specialist has seen an increase in enquiries for property in Portugal over
recent months, with buyers looking to snap up a bargain in the country.  Conti, an overseas mortgage expert, now
says that Portugal is the third most popular destination with overseas property
buyers looking for a foreign home loan.

Tourism in the Algarve also
remains strong, and so there are plenty of opportunities to generate rental
income, as we see here.

High tourist numbers and access to lending make Portugal an attractive
place to buy

Claire Nessling, overseas
mortgage expert, said: “Portugal may still be in recession and stuck with the
label of one of Europe’s so-called PIGS (Portugal, Ireland, Greece and Spain),
but it has managed to escape the type of property crash experienced by Spain.

“This is due to its tighter
lending conditions and stricter planning laws which have helped to prevent
over-development.”

The pound’s recent strengthening
against the Euro has also made property in Portugal cheaper to UK buyers.  Nick Marr, director of overseas property specialist Homes Go Fast, said: “As sterling strengthens against the
Euro, investors in Eurozone countries are able to get more for their money.

“With prices in Portugal also
falling in some areas, savvy buyers are buying properties previously out of
their price range.”

Portugal continues to attract a
high number of tourists and so the opportunities for generating an income from
your holiday home are also good. 
Ms Nessling adds: “Tourism in Portugal is strong too, particularly in
the Algarve and increasingly along the likes of the Silver Coast, so property
rental opportunities are abundant.”

If you’re looking to buy property
in Portugal, Conti says that it is still possible to borrow up to 75 per cent
of the purchase price of the property at competitive rates (around 5 per cent).

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