Santander mortgage for non-residents in Portugal. Everything you need to know

Banco Santander Totta, or simply Santander, is the third-largest bank in Portugal. More interestingly, it offers mortgages for non-residents looking to buy property in Portugal. 

In this article, we'll go through eligibility requirements, the documents you'll need, and the pros and cons of getting a mortgage with Santander as a foreigner. 

Looking to simplify your mortgage process and save time and money? 

Homevest, an innovative online platform, handles your entire mortgage process without needing to be in Portugal. It's a convenience at your fingertips. 

What are the mortgage options Santander offers for non-residents looking to buy property in Portugal?

Santander stands out with its diverse mortgage options, catering to various needs. Whether you're looking to buy a holiday home or invest in property, Santander has a solution.

You can finance up to 70-80% of the property's value, with flexible repayment terms of up to 30 years.

They also have competitive interest rates and personalized plans to suit your needs. You can choose from a variable, mixed, and fixed-rate mortgage, giving you the flexibility to manage your mortgage according to your financial situation. 

You can borrow from 75,000 to 1,000,000 EUR at a base spread of 1.90% (which you can lower by getting other products such as credit cards and insurance). 

So, if you dream of owning a piece of Portugal, Santander makes it easier to turn that dream into reality.

What are the eligibility requirements for a Santander mortgage?

To qualify for a Santander mortgage, non-residents need to meet these requirements:

• Permanent employment
• At least 6 months in your current job
• At the lowest, a 30% deposit
• Debt-to-income ratio no more than 35%
• Maximum LTV (loan-to-value) of 80%
• Good credit history

When we were applying for a mortgage with Santander, we hadn't found a property yet. Still, that wasn't a problem because as soon as they responded positively, we found a property in our desired location. Everything played out quite slowly after that, though, as the bank was flooded with mortgage applicants at the time.

Although we decided to get a mortgage with a different bank, I still consider them a good choice for anyone looking to buy property from abroad. The communication was quite open, and we weren't left in the dark about anything related to our mortgage process. 

You should also know that until you've signed the papers, you can change the mortgage provider. 

Of course, you must pay for any valuation done by the bank or any other closing fees.    

What documents are required for a Santander mortgage in Portugal?

To apply for a Santander mortgage in Portugal as a resident or non-resident, you need to supply the following documents:

• Loan application signed by all the parties involved
• Passport, Citizen’s Card, or ID card 
• Taxpayer number of all the parties involved
• Last Income Tax Declaration and Note of Settlement
• Last 3 payslips
• Bank account statements for the last 3 months
• Declaration of the Employer, indicating the employment relationship
• Current permanent certificate of the Commercial Registry Office (in the case of a managing partner)

Additionally, they might ask you for proof of origin of funds, outstanding debts, savings, and more. 

Often, the banks will also ask for your credit report, which you will have to obtain yourself. 

When my wife and I were applying for the mortgage, we got it from the Central Bank of Ireland and Experian, the credit report company.

Why two reports? Because we lived in two other countries before moving to Portugal - Croatia and Ireland.

Homevest assists non-residents in securing mortgages in Portugal while living abroad

Living abroad and buying properties in another country is no longer an impossible task. Companies like Homevest offer solutions to help you secure the best mortgage deal in Portugal for your financial situation.

Homevest provides an all-in-one platform to speed up the process of obtaining a mortgage abroad. The platform assists applicants in sourcing the necessary documents required for bank review, ensuring that all paperwork is easy to find and access in one place.

Customers benefit from efficient and transparent communication between involved parties, making it easier to track the progress of their applications.

Santander mortgage in Portugal for non-residents: pros and cons

At the end of the day, Santander is the third-largest bank in Portugal, offering competitive mortgage rates in the Portuguese market. 

You can easily apply online without the need to step foot into Portugal. 

Pros

• a well-known bank
• documents in English, German, French, Italian, Swedish, Spanish or Portuguese don't need to be translated
• if you get the bank's other financial products, you can lower the spread

Cons

• if you have existing debt, the 35% debt-to-income ratio might mean you won't get the mortgage
• as a large bank, perhaps not enough people are dedicated to the mortgage process

Sources used and checked in May 2024:

1. Santander Mortgages
2. Santander Mortgage Calculator

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.