Search Profile Menu Chat

Getting a mortgage in Portugal

Getting a mortgage in Portugal You need to know exactly how much you can afford to spend and how you will finance your property. Many agents recommend you have your finance in place before you go and view properties, so you won’t lose out because the process is not always as quick one.

Mortgage overview in Portugal

Arranging any mortgage abroad can be a daunting prospect and Portugal is certainly no exception. The mortgage market in Portugal is quite traditional in the sense that having the right contacts is crucial if you want to get the best deals. The process typically takes 6-8 weeks.

If you have sufficient equity in your UK property, you can choose to take out an additional or new mortgage to buy your overseas property. Bear in mind, even though there is no Portuguese lender in place to insist on certain processes, you should still seek legal advice and ensure independent checks are carried out on the property.

One advantage of a Portuguese mortgage is that the lender will carry out its own checks on the property and arrange a valuation. Portuguese mortgage rates are particularly attractive (see example terms above) and present buyers with a good option to raise finance locally.

Mortgage rates and terms

During 2025 mortgage rates have been trending downwards from the 2024 highs, influenced by ECB rate cuts. At the time of writing some rates have dropped below 3%, with variable rates around 3-3.5% - generally fixed for the whole term (up to 40 years, subject of age, as each mortgage, needs to be repaid at the age of 75).

Mortgages are typically 70-80% loan-to-value (based on the purchase price) – residents get offered 10 per cent more. Interest-only deals are rare so most mortgages are on a repayment basis with the maximum term 40 years. If you are 80 years or older, it is advisable to speak to a mortgage specialist as they are ways for you to obtain a mortgage.

Power of attorney

Power of Attorney Just as in the UK, you can authorise someone (normally your lawyer) to act on your behalf with regard to your legal matters in Portugal. This is often wise, as travelling to Portugal to sign documents can become inconvenient or mean that you miss an essential signing date through ill-health or travel disruption. A Power of Attorney can be either general or limited to a specific function (for example, the signing on your behalf of the escritura (Deeds) to your intended property.

FAQs: Getting a mortgage in Portugal

Can foreigners get a mortgage in Portugal?

Yes. Foreigners, including UK residents after Brexit, can apply for mortgages in Portugal. Most banks are willing to lend to non-residents, though lending criteria are usually stricter than for Portuguese citizens.

How much can I borrow with a Portuguese mortgage?

Non-residents can usually borrow between 60% and 70% of a property’s value. Residents may be able to borrow up to 80%–90%. The exact amount depends on income, credit history, and the bank’s assessment.

What documents do I need for a mortgage in Portugal?

Typical requirements include proof of income (such as payslips or tax returns), bank statements, ID or passport, Portuguese tax number (NIF), and details of the property being purchased. Non-residents must also show proof of address in their home country.

What are mortgage rates like in Portugal?

Rates vary depending on the bank, loan term, and whether the mortgage is fixed or variable. Portuguese mortgage rates are often lower than in the UK, but it is important to compare offers carefully and consider long-term affordability.

Do I need a mortgage broker in Portugal?

While not required, many foreign buyers use mortgage brokers to find the best deals and navigate language barriers. Brokers familiar with expat buyers can simplify the process and improve your chances of approval.

How long does it take to get a mortgage approved in Portugal?

On average, mortgage approval takes 4–6 weeks. It can be quicker if all documents are in order, but delays may occur if additional checks are needed.

Are there fees when arranging a mortgage in Portugal?

Yes. Fees may include bank arrangement fees, valuation fees, and legal costs. Buyers should also budget for property transfer tax (IMT), stamp duty, and notary fees as part of the overall purchase.

Should I consider exchange rates when repaying a Portuguese mortgage?

Yes. If your income is in pounds, dollars, or another currency, exchange rate fluctuations can affect your repayments. Many overseas buyers use specialist currency services to manage transfers. Get in touch with A Place in the Sun Currency today to see how we can help.

Getting a mortgage in Portugal Download our guide