Cape Verde Mortgages

Cape Verde Mortgage Information

Buying a home or an investment property in Cape Verde has soared in popularity in the last few years. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a wide and growing range of mortgage products available for non residents of Cape Verde.

Cape Verde Mortgage Products

Mortgage lending in Cape Verde is at variable rate and on a repayment basis or interest only basis. Cape Verde mortgages are generally linked to the euribor (European inter bank offered rate).

Cape Verde Mortgages Loan to Values

Cape Verde mortgage loan to values are up to 75% for non-residents of Cape Verde. The loan percentage is linked to the mortgage security valuation the lender assesses upon the property you choose or the price you are buying it for, whichever is the lower.

Cape Verde Mortgage Terms

Cape Verde mortgage terms range from 5 to 35 years, are age and lender related. It is usual to have repaid the mortgage by age 75.

Cape Verde Mortgage Costs

All Cape Verde banks charge an arrangement fee for lending you the money. Other costs including mortgage taxes and deed costs. You should allow in the region of 6% to 7% of the purchase price of your house to cover your costs in Cape Verde. You should contract an independent lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.

Buy Euro Currency

Your Cape Verde mortgage will be repayable monthly in Euros. To buy Euros at the best rates click here.

Cape Verde Mortgage Underwriting

Mortgages in Cape Verde are only granted on a full documentation and status basis. Cape Verde banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.

Hints & Tips

1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Cape Verde property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.

2. Always use an independent lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.

3. Be prepared for hiccups along the way. Cape Verde law differs from that which you are used. They use a Notary system that is long, drawn out and expensive.

4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.

5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.