Formal Approval and Completion

Save time by ensuring that you understand the full application and mortgage process in Portugal

Documentation

To speed up the process we do not require any documentation for the initial assessment, but if you wish to proceed with one of the quotes provided by your Mortgage Direct adviser, you will need to send copies of various documents to us. Your adviser will confirm exactly which documents you will need.

At this stage, you will also need to send us a signed copy of our Terms and Conditions and arrange payment of our Administration Fee of €495 (see Pricing for more information on our fees).

Portuguese Bank Account

To get a mortgage in Portugal you will need a bank account with the bank arranging the mortgage. Sometimes this is done at the outset and other times after the formal approval has been granted. It can often be a good idea to open a Portuguese bank account early in the process in order to benefit from the best possible exchange rates. Your Mortgage Direct adviser can help you figure out what is the best solution for you.

LEGAL PROCESS

You will normally need to sign a reservation contract and pay a reservation fee/deposit at the start of the purchase process – the estate agent usually arranges this part of the process. We recommend that you appoint a lawyer before you sign any contracts. They will ensure all the necessary checks on the property are carried out, including a full search report and will check the legal status of the property. Also, your lawyer can help you with the application for your NIE number without which completion of the mortgage is not possible.

VALUATION

Most banks instruct a valuation after the formal approval has been granted but some require this to be done at the start of the process. Monthly mortgage payments have to be paid from your Portuguese account and funds to cover the valuation fee have to be paid into it before the valuation can be instructed. The bank will usually select a company at random from their panel of independent valuers. The selected company will send one of their valuers to the property by prior appointment. After the visit, the valuer will prepare their report and send it to the bank.

FORMAL APPROVAL

On the strength of the value of the property and the documentation provided, the credit department (underwriters) of the selected bank will approve or decline the mortgage. If approved, the bank will confirm the final conditions. Assuming all parties are in agreement to proceed, the bank will then liaise with you, the agent and both lawyers to calculate the funds that you need to have available in your account. Once the funds are in place, the arrangements for completion can be made.

Mortgage Completion

An appointment must be made at a notary office to sign the deeds. You or your legally appointed representative must attend the completion. If you do not attend, your legal representative must present a suitable ‘Power of Attorney’ (‘Poder’ in Portuguese) document. Usually, just prior to completion, we will request payment of the outstanding Arrangement Fee due to Mortgage Direct. After the deeds have been signed and the arrangement fee is paid, the cheques will be distributed, the keys are handed over and the mortgage process is completed.

DOCUMENTATION

Documentation

To speed up the process we do not require any documentation for the initial assessment, but if you wish to proceed with one of the quotes provided by your Mortgage Direct adviser, you will need to send copies of various documents to us. Your adviser will confirm exactly which documents you will need.

At this stage, you will also need to send us a signed copy of our Terms and Conditions and arrange payment of our Administration Fee of €495 (see Pricing for more information on our fees).

PORTUGUESE BANK ACCOUNT

Portuguese Bank Account

To get a mortgage in Portugal you will need a bank account with the bank arranging the mortgage. Sometimes this is done at the outset and other times after the formal approval has been granted. It can often be a good idea to open a Portuguese bank account early in the process in order to benefit from the best possible exchange rates. Your Mortgage Direct adviser can help you figure out what is the best solution for you.

LEGAL PROCESS

LEGAL PROCESS

You will normally need to sign a reservation contract and pay a reservation fee/deposit at the start of the purchase process – the estate agent usually arranges this part of the process. We recommend that you appoint a lawyer before you sign any contracts. They will ensure all the necessary checks on the property are carried out, including a full search report and will check the legal status of the property. Also, your lawyer can help you with the application for your NIE number without which completion of the mortgage is not possible.

VALUATION

VALUATION

Most banks instruct a valuation after the formal approval has been granted but some require this to be done at the start of the process. Monthly mortgage payments have to be paid from your Portuguese account and funds to cover the valuation fee have to be paid into it before the valuation can be instructed. The bank will usually select a company at random from their panel of independent valuers. The selected company will send one of their valuers to the property by prior appointment. After the visit, the valuer will prepare their report and send it to the bank.

FORMAL APPROVAL

FORMAL APPROVAL

On the strength of the value of the property and the documentation provided, the credit department (underwriters) of the selected bank will approve or decline the mortgage. If approved, the bank will confirm the final conditions. Assuming all parties are in agreement to proceed, the bank will then liaise with you, the agent and both lawyers to calculate the funds that you need to have available in your account. Once the funds are in place, the arrangements for completion can be made.

COMPLETION

Mortgage Completion

An appointment must be made at a notary office to sign the deeds. You or your legally appointed representative must attend the completion. If you do not attend, your legal representative must present a suitable ‘Power of Attorney’ (‘Poder’ in Portuguese) document. Usually, just prior to completion, we will request payment of the outstanding Arrangement Fee due to Mortgage Direct. After the deeds have been signed and the arrangement fee is paid, the cheques will be distributed, the keys are handed over and the mortgage process is completed.