Bank lending available for property in PortugalA 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).