Once the mortgage rate has been secured, the requisite life insurance needs to be sorted out. This will involve the applicant completing a medical questionnaire and possibly undergoing some tests. and waiting for the results. Once the bank has all the details it needs, the rate of the insurance can be added to the mortgage contract.
Are you eligible for the insurance?
Unfortunately, age is an important consideration when setting life insurance rates. Younger applicants should be able to get cover with relatively low monthly payments. Older applicants – you can see where this is going – will pay more.
In some cases – such as when you have had any medical problems in the past, or you’re borrowing a significant amount of money – you may find that the life insurance company will ask you to undergo some medical tests.
Sadly, you may be refused life insurance altogether if you have had any serious medical problems. All is not lost, though, as it might be possible to arrange a loan without life insurance – or to assign UK cover. This will, however, greatly reduce your choice of Portuguese mortgage products.
Opening a bank account in Portugal
This is a crucial part of obtaining your mortgage – you probably won’t be able to get the mortgage without a Portuguese bank account. You normally have to open one three or four weeks after you’ve begun the mortgage application process.
Whether you plan to live in Portugal or have a second home in the country it will all be easier – and is generally a condition of the loan – if you have a Portuguese bank account.
Opening the account
Opening a bank account in Portugal is actually pretty quick and simple (for an individual – as opposed to a company; more later). Firstly, you will need to fill in and sign the appropriate forms. They will, of course, be in Portuguese, but we can provide English translations of them so you can see what you are signing.
In addition to a completed (and signed) form, there are several other documents that will be required before you can open a bank account in Portugal:
– Copy of a valid passport
– Marriage certificate (copy)
– Copy of a recent utility bill that is less than three months old
– Proof of income (your tax document, accountant’s letter or last two payslips)
– The reservation contract/title of the property you’re hoping to buy in Portugal
Once these items have been provided to us, we can normally get a bank to open an account for you in 48 hours.
There’s a catch, though – almost all lenders will want to see you in person before opening the account, so it’s a good idea to have your suitcase packed.
No real issues here: if you wish to open a joint bank account you have the option of the account being held as Mr. and Mrs. SMITH or Mr. or Mrs. SMITH. In the case of the former, both parties must sign when making any payments/withdrawals and in the event of one partner dying, the account will be frozen until the will has been proven. If you want a joint account where either partner can draw on the account, the second option is the one to go for.
Bank opening hours in Portugal vary quite a lot, depending on the location and size of branch. Generally, though, they are open from 9am to 5pm Mondays to Fridays. Some banks open on Saturday mornings and stay open late on certain evenings, especially in larger towns. Expect your bank to close for lunch in smaller towns.
Opening a Portuguese bank account for a company
This is less straightforward than when opening a personal account, although things become a little easier if the bank providing the loan also opens the account. We always try to break things down as simply as we can for clients and make sure they understand all of their options.