GeniB

My YD has now come up against the first tangible evidence that Brexit effects Brits in Portugal (apart from the building of the separate Non EU customs booths at Faro airport that is)
When she bought her first apartment two years ago ,she obtained a very reasonable mortgage term ,with my OH and I as guarantors. No questions asked.
She sold it in September, and has now bought another.
The woman she dealt with at Barclays Bank has disappeared ?. The new guy at the new Bankinter was very brisk. He could only offer two thirds of the offer she had before ..Because of Brexit he said It made no difference that she was a resident .He also required her to have a 'permanent' work contract signed by her employer. Not just a work contract.He would then 'consider' her request for a mortgage loan. As she has 15 days to arrange all this before the deposit terms run out,its deep breaths and fingers crossed time.
Plenty of older people about with wads of cash in their pockets to nip in and grab the flat.. Its hard being young these days .

Red Eric

Might it not be possible that the loan terms could be different because a) it's now a different bank and b) a lot of banks have reviewed their lending strategy of late?

EMR

An acquaintance is director if one of Portugals biggest financial companies part of which is obtaining and arranging mortgages.
Nothing has changed recently in their terms.
Mortgages are based on affordability and the financial security of the borrower.
The max loan is also based not just l on the income of the lender but the banks assessment of the value as they determine it of the property.
Usually well below the sales price.
Brexit has nothing to do with it, the banks do not want to repeat the mistakes they made in the past.
We know of buyers who have had to walk away as the " mortgage " value and their available cash was less than the sales price,

..

chislenko

Bit ageist and assumptive.

Moses2013

Pretty normal these days that you have to have a permanent contract (not just work) and be out of probation period.

GeniB

Could be! The same staff are working there and the ethics appear to be the same..It however was made clear to my YD that this was specifically aimed at Brits.and that it possible wouldn't be the same at all banks.

The 'lot of banks' you mention must be bending over backwards to accommodate new buyers surely.? The market is booming right now.

GeniB

Suggest you go into the Bankinter in Lagos and ask this guy why he specifically mention Brexit. If it's nothing to do with it EMR

EMR

They are lending but to strict rules and valuations.
There are a lot cash buyers in the market.

Red Eric

Maybe, though I thought all the stress-testing etc was aimed at rebalancing the ratios of capital to loans, which I thought I'd heard made it more difficult to borrow. May have got that wrong, though.

Anyway, obviously not a great time to be borrowing if they are taking Brexit into account.

Kudos to you for acting as guarantor, by the way. That would definitely give me the heeby-geebies, the sorry tales I've heard

EMR

It could simply be that they perceive the "risk" actor for Brits defaulting is now higher than others.
Brits applying for mortgages are not all resident , those taking out Euro mortgages are subject to the vagaries of exchange rates unlike those from the Eurozone.

GeniB

Not really ..A retired Dutch lady walked into YD's office the day after the sale ,furious that she had missed the flat. She wanted the agent (from another agency) to bend the rules for her as she 'had the cash to buy direct' . She had no idea my YD was the buyer.,or that she could understand every word she said.

It's not ageist, assumptive ,or a criticism .It's the facts of life today

GeniB

Durrrh We know that ! .I already said that YD had bought before under those rules and regs .Her salary has in fact risen in the two yrs,plus she made a large profit on the sale .Hardly making her a huge risk factor.....

GeniB

I think your right . It was interesting that he said it made no difference that she was a resident though. Surely that should have made some difference

GeniB

It was a bit of a white knuckle ride.Luckily her boss had more or less (if not in writing) guaranteed her job. She has a good eye for the potential of properties ,had in London ,unfortunately only when renting though I think if all goes smoothly with this purchase, she should do very well.

chislenko

Forgive me but the statement "lots of older people with wads of cash" looks like an assumption to me.