This area will help you find the right mortgage package to fund your proposed buy to let property in Portugal, give you tips on how to manage a buy to let property and also provide you with ideas on how to go about adding more 'buy to let' properties to create an investment portfolio.

      Who is this site for ?

      Portugal Property Finance aims to advise and assist anyone who wants to realise potential gains in the property market, enabling you to join the many investors who are using 'buy to let' as a viable alternative to a pension product or a more traditional investment fund.

     What is Buy to Let ?

     Until recently, buying a property to produce an income was considered by lenders to be a commercial undertaking. For that reason mortgages on property, intended to be let, attracted higher interest rates than those available to owner occupiers. In addition, rental income was not usually allowed to be considered in the assessment of a borrowers ability to repay the mortgage.

     The concept of purchasing a second home in the sunshine which can be used for holidays and eventually for retirement is now an exciting alternative to a managed pension fund, often with poor growth.

      Using the equity in an existing UK property provides a timely opportunity to invest in a second property which, if correctly managed, can be let out when not required by family and could achieve a regular income, sufficient to cover or even exceed its costs. Add to this the potential for Capital Growth and you have an exciting opportunity for the private investor, more especially now that the lending criteria are more relaxed and lower interest rates are available.

      Gross returns; or the rent received before taking account of the costs incurred such as management fees, maintenance, service charges, ground rents and insurance, can vary between approximately 7% and 10%. Do note that expensive properties may produce a lower return than cheaper ones.

     The average rental return in Portugal mirrors the UK and tends to remain at approximately 10%. Capital appreciation seems likely to continue to be very much higher than inflation for the foreseeable future.

    Buying a property to let is different from buying your own home. Make sure you get advice from an experienced letting agent who will know the local market and where the demand lies. Two-bedroom flats, or small town houses are the most popular - properties located close to good leisure facilities or even on a golf course are always a good investment.

     Once a provisional Mortgage offer is made, 'Buy to Let' investors can start looking for suitable property. Once a property has been found, a letting agent can advise on the letting potential, the rent achievable in the local market and if you are not buying a new property, whether re-decoration and new fixtures and fittings are needed to attract quality rental clients.

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Your home is at risk if you do not keep up repayments on a mortgage secured on it. All loans are subject to status. Written quotations are available directly from the lender on request.