Getting Your Documents in Order to Apply for Portuguese Mortgage
If you are planning to apply for a Portuguese mortgage to buy your Algarve Property, you may be asked to provide the following documents. Obviously, it depends on the type of property you are planning on buying and your particular situation.
Firstly Your Personal Documents
These documents will vary depending on your status but apply to each person who is applying for the mortgage. So for joint applicants, they both must provide them.
A Copy of Your Passports – For all applicants. You may be asked to take the originals along to the lender for them to take a copy.
Your Tax Identification Number – (NIF) in Portugal. You will need to register for a Portuguese tax number at your local finanças office. Depending on your situation, this does not mean you will be a tax resident in Portugal and liable to pay income tax in the country.
Proof of Income – Obviously, this will depend on your current employment situation. A work contract, tax assessment, accountant’s letter etc. See below for more details.
Your Bank Statements – In most cases the last 60 days of incoming and outgoing cash flow, however, some lenders may ask for 6 months or one year.
A Recent Utility Bill – Make sure you are registered to pay the bills at your current accommodation.
Recent Mortgage Statement – If you already own a house and are paying a mortgage.
Proof of Savings or Investment Accounts – The more financial documents you provide the stronger your case.
Bank Reference Letter – If your bank is outside the lender’s institution you may need a reference letter from them.
Property Details – If you have already found a property take along the details from the estate agent. You can get a proposal for a mortgage with our having a property.
Your Employment Documents
These documents vary depending on your employment status for example you are either employed, self-employed or retired.
For Employed Persons.
Your last year’s tax returns
Your last three month’s payslips
A reference letter from the employer – a simple letter stating how long you have been working with the company and your gross annual salary and any bonuses you receive.
If you are Self-Employed
If You are Self-employed or hold a 20% or more share in a limited company.
Your last year’s tax return
Your last three months of business bank account statements
3 years of your companies profit & loss figures and balance sheet
Other Forms of Income Documents
Confirmation of pension income for the last 3 months
A copy of your tenancy agreement for persons owning rental properties
The last 3 months of statements showing the rent received
Copy of any investment certificates you may hold
Depending on the level of the risk assessment the lender may request additional documents.
To Conclude Mortgage Documents Advice
If you are still residing outside of Portugal make sure you collect all the documents above before you leave as it can delay the mortgage process should you need to send for missing items?
If you are already living in the Algarve and need to get any documents mailed from your country of residence do so before you commence your application to avoid any delays.
You should seek professional advice from persons who are adaptable in the field of preparing your mortgage application and can guide you in the right direction. They can speed up the process and make sure your process goes without a hitch, especially if you do not speak the Portuguese language.
If you need any help in preparing for your mortgage application or indeed searching for your ideal Algarve property we at gatehouse International are here to help. Feel free to contact one of the teams who will guide you in the right direction.
The managing Partner handles the property promotion and sales from the Almancil office which is also adjacent to the luxury coastal golf resorts of Vale do Lobo and Quinta do Lago. With over 25 years of experience in the Algarve property & financial markets.