Portuguese lender Santander Totta has introduced its first flexible loan for non-residents which ena...
Portuguese lender Santander Totta has introduced its first flexible loan for non-residents which enables buyers to defer 30% of the payment on their Portuguese land or property until maturity.
The mortgage is aimed at a range of buyers, including younger buyers struggling to fund the initial deposit required for their property, potential retirees who have yet to sell their 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 at Santander Totta, said: "This new mortgage structure will give buyers the chance to buy their ideal property in Portugal now rather than in a few years time. It is the first product in the market that allows part of the purchase price to be paid at the end of the term."
The residual mortgage can be arranged in euros, sterling, swiss francs and US dollars. Mortgagees would pay repayment and interest charges on 70% of the loan and interest-only charges on the remaining 30% of the loan. On maturity they would pay the remaining 30% owed on the property to the bank.
Perks added: "The real plus is that purchasers can manage their repayments according to their current lifestyle while planning for the future. We felt that there was room in the market for this product."
Ian Howell, IFA at Capital Tower, commented: "It's an unusual concept but it is bound to be popular. It is a halfway house between an interest-only mortgage and the traditional repayment plan so it will put a second home in more reach of more people."
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