Mortgages in Portugal

Buying a house is a decision of great responsibility, and especially if you have decided to buy property abroad in Portugal for the first time.

October brings good news for all Portuguese residents who have borrowed money from the bank to buy a house.

If you're thinking of moving to Portugal and buying a home, then getting a mortgage will be close to the top of your list.

Buying property abroad can be a daunting experience. However, here at idealista, we are here to help you every step of the way when buying property in Portugal.

Moving abroad and buying property in Portugal can be a daunting experience, especially if you don't speak the language, or if you don't have the right advice or guidance.

Just as the demand for buying and renting property, housing credit and mortgages have become an increasingly digital process in Portugal and one of the effects of the COVID-19 pandemic has been to accelerate this transition.

In recent years, banks in Portugal have been engaged in a real trade war, promising even lower spreads to attract new home loan customers or even persuade customers to move their mortgage, stealing them from the competition.

One of the big questions that arises when buying a property in Portugal, and indeed across the world, is what kind of housing credit is best? Is it better to have a variable rate loan or a fixed rate loan?

After the COVID-19 pandemic, interest rates in Potugal on mortgages are following a downward trend, in May reaching the lowest value since at least the beginning of 2009, the date that marks the start of the historical sequence of the National Statistics Institute in Portugal (INE).

The global coronavirus pandemic is affecting everyone and everything in one way or another. The authorities anticipate a year of global economic recession, which contrasts with the time before the outbreak of this global health crisis.

There are several updates in the moratorium law on mortgages in Portugal.

Most house buyers with a mortgage tend to take out home loans to be paid back over 25-30 years. This is a very long term and it represents a lot of money in interest.