Santander Totta’s new mortgage structure will give a range of buyers the opportunity to purchase their property in Portugal now rather than in a few years’ time. In particular, these include potential purchasers such as younger buyers struggling to fund the initial deposit required for their property; potential retirees who have yet to sell their UK home; those with considerable current outgoings but whose situation will change; and those who wish to afford a more expensive property.
Simon Perks, deputy general manager of Santander Totta’s London branch, commented: “We are the first to offer UK buyers a flexible mortgage on their new home in Portugal which will enable them to tailor their finances more closely to their circumstances. It will allow many purchasers to manage their repayments according to their current lifestyle, whilst planning for the future.”
The residual mortgage, which can be arranged in Euros, Sterling, Swiss Francs and US dollars, offers UK buyers the opportunity to take out a 70 per cent capital repayment mortgage over 25 years with the option of repaying the remaining 30 per cent at the end of the loan period.
Mortgagees would pay repayment and interest charges on 70 per cent of the loan and interest only charges on the remaining 30 per cent of the loan. On maturity, they would pay the remaining 30 per cent owed on the property to the bank.
Santander Totta arranges mortgages for individuals purchasing freehold land, buildings, apartments and houses in Portugal. ‘Capital Repayment’ and ‘Interest Only’ loans are available. Stage payments are also considered.
