Portugal had always been a popular choice of destination for Brits looking for a new life abroad. Mainly due to the warm climate, proximity to the UK and slower pace of life, it’s not surprising that people continue to move their in their thousands each year. With property prices slowly on the rise however, it is not always possible to purchase your Portuguese property outright, and many people find that they still have to take out a mortgage when they get to Portugal.

Portuguese mortgages are available for those with residency and those who are not living there. If you have residency then you will be able to get a mortgage for around 90% of the purchase price, whereas if you do not have permanent residency, this figure drops to around 80%. Either way, it is a fairly small deposit that you will need.

When paying for your mortgage you may well be transferring funds from a UK account, at least for the first year or so. You may think that the bank is the best way to do this but they could in fact lose you money. It is a better idea to go t a currency specialist as they will not only be able to provide a better rate than the banks, but also offer help and advice and many more services which you would not find with a bank.

When Tim and Mary Gladstone moved to Portugal, they decided that they could get a better rate for their currency if they used a specialist. After calling Smart they set up an account to move their deposit to Portugal. They saved over £1200 than if they had used a bank! They also had their transfer fees significantly reduced by their Smart trader, who was also on hand to advise them when the best time to buy their currency was and which payment plan would benefit their particular needs. To get in contact with Smart Currency Exchange go to:  http://www.smartcurrencyexchange.com/Currency_quote.aspx

You will need to have opened a bank account in Portugal in order to apply for a mortgage, as this is where the repayments will be taken from. The mortgage will also need to be paid off before you reach the age of 65, therefore if you want to retire there, you will have to be able to buy the property outright, or perhaps see if you can have a UK mortgage to pay for it. These terms are general for Portugal but obviously do vary depending on the lender so be sure to call different lenders and see what they can offer you.