Getting a mortgage from a UK bank for Portuguese property is challenging due to limited options
Getting a mortgage from a UK bank for Portuguese property is challenging due to limited options

Which UK banks offer mortgages in Portugal?

Do banks in the UK provide mortgages for properties in Portugal? What other alternatives exist besides UK banks? Read on to understand the available options.

Delia Mihuț
Written by: Delia Mihuț
Published at 2024-04-25
Last updated on 2024-05-23
Readtime 3 minutes

Wish you could embrace a whole new culture rich with history and language that allowed you to live at a different pace? We don’t blame you for wondering if you can get a UK mortgage for a property abroad so you can live the dream. 

Keep reading for the next couple of minutes, and we’ll see how realistic it is to obtain a UK mortgage for a Portugal property. We’ll also take a look at some available alternatives.

Is it possible to get a UK mortgage for a property in Portugal?

Yes, the established High Street name Santander is an international bank that can offer suitable mortgage solutions via its local subsidiary. 

However, it is important to know that you cannot use a standard UK mortgage product to fund the purchase of a property in Portugal. You will need a specialist mortgage to finance the purchase of a Portuguese property. 

Which UK banks offer mortgages for properties in Portugal?

Santander provides mortgages for UK residents looking to purchase property in Portugal, but they are setting up the mortgage through the Portuguese subsidiary. Here are the key details you need to know about:

  • You can borrow 75,000 to 1,000,000 EUR with a base spread of 1.90% — this is competitive when compared to Portuguese lenders selling to the local market 
  • You can enjoy up to 80% financing on the value of your new home 
  • You can reduce your interest rate by as much as 0.80% by signing up for specific contracted products 
  • You may be charged an opening fee (up to 1.5%) depending on your risk profile — credit history, employment history, income, number of financial dependents 

HSBC no longer offers overseas mortgages in the EU. 

What are the requirements set by UK banks for obtaining an overseas mortgage?

UK mortgages are set according to multiples of your household annual income, but this is not the case when buying in Portugal. Here, the local regulator requires all products to be structured according to their affordability.

The figure generated is your debt-to-income ratio, and Santander typically asks for it to be below 35%. However, depending on the exact nature of your circumstances, this can vary by several percentage points in either direction. 

To get a UK mortgage for Portugal property investments, you will have to make sure it is a specialist overseas mortgage. This means that there will be a 0.5% early repayment charge for a variable-rate mortgage and a 2% extra charge when paying off a fixed-rate agreement early. 

Alternatives to UK banks for citizens who want to access a mortgage in Portugal

If you apply directly with local Portuguese lenders you can make use of the growing variety of non-resident mortgages that are now available. This will give you a greater range of options and open up a whole new market where lenders are competing to get your business. Novobanco, Bankinter, CGD, and Millennium BCP are among the top banks in Portugal that offer mortgages to UK citizens

The result could be a better fit for you in terms of price, terms, and the total amount you can borrow. Take a look at the list below and you’ll see how local lenders can help you borrow twice as much as you can through Santander’s subsidiary in Portugal. 

Novobanco mortgage

Novobanco helps full-time and self-employed non-residents relocate for a new way of life with financing solutions that cover up to 80% of the purchase price of the new property. 

Novobanco offers free life insurance as a standard, helping to reduce the cost of relocating to Portugal so you can simplify your budgeting. 

Bankinter mortgage

Bankinter provides peace-of-mind options to fix the interest for up to 30 years for mortgages that cover up to 80% of the property value. 

Bankinter offers a 100% online application process, combined with a single in-person visit to the notary’s office, which could be an attractive option for buyers who are currently outside of Portugal.

CGD mortgage 

CGB will increase their 80% property value coverage to 90% if you can prove you intend to apply for permanent residence in Portugal. 

CGB offers repayments until the age of 80 (the standard age is 75 in Portugal) and can cover 75% of the value when buying to let. 

Millennium BCP

Millennium BCP allows non-residents in Portugal to borrow up to 2,000,000 EUR, and mortgages are typically signed and completed in less than a month.  

Millennium BCP does not consider loans or credit cards taken out in the UK when assessing the affordability of the mortgage, providing you with greater flexibility. 

Is there a way to simplify accessing a Portuguese mortgage from the UK?

UK residents looking to relocate to Portugal can use Homevest to request and compare mortgage offers directly from abroad. 

By seeing all of your options online and filtering to meet your requirements, you can get a mortgage in Portugal from the UK quickly and efficiently. Homevest digital platform allows you to centralize your application, enabling you to request multiple offers from top-tier Portuguese banks like Santander, Novobanco, Bankinter, and CGD, all from the comfort of your UK home. 


While Santander Portugal allows you to finance your property purchase with help from a UK High Street name, there are a wealth of options in the local market that are worth consideration. 

Freeing yourself from the constraint of only shopping services from a single lender opens up competition, allowing you to potentially pay less, borrow more, and finalize your agreement faster. 


Sources used and checked in April 2024:

  1. Santander International Mortgages
  2. CGD Mortgages 
  3. Novobanco mortgages
  4. Bankinter mortgages
  5. HSBC overseas mortgages

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.

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