Buying in madeira from uk salary and relying on madeira income

[Nando8039]

I'm looking to buy a property on madeira, as all my family live there and I've had enough of the UK. I can put down the deposit and get the mortgage from my uk job. I will then move to madeira and get a lower local job and also benefit from €800 monthly rental income from a family property. I would have around €20,000 in savings. The local job and rental income would leave €400 spare every month.

Did you start a thread recently about moving to Hamburg and then changed to moving to Madeira?

No, what do you think i should do?

Well I would wonder who the mortgage is going to be with. If its with a UK bank/BS then why would they lend for a property abroad or can you get a holiday let type mortgage?

If its with a bank in Madeira, would they allow that on a UK income?

Whats your status in Madeira, are you a dual citizen? Are there requirements of a minimum cost of a property in Madeira for a UK citizen to buy?

Mortgage is with portuguese banks and yes they accept uk income, I'm dual british/portuguese national.

I would talk to a broker in the uk first. Do you have one?

Seems ideal then, whats your query?

You presumably know more about how mortgages in Madeira work. Are they the same as the UK where it’s common to fix at a particular interest rate for 2/3/5 years and then remortgage when the fixed period ends? If so, if you’re basing the initial mortgage on your current higher U.K. salary, will your lower local salary enable you to remortgage for the amount you need? Are you also wondering whether €400 a month is enough money leftover to live on? That’s really for you to work out on a spreadsheet using your known costs and expected lifestyle you want to fund.

I’d speak with your family who will know more about the local market and costs, or join a local forum where locals will be more in the know than mostly U.K.-based MNers.

Have you checked how much the Portuguese bank will actually lend you on your UK salary? In Spain, they want you to have 75% of the property value in cash as a tax resident of another country. So if you are only borrowing 25% of the property value, you'll either have a relatively small mortgage or you must be buying a palace if it costs you 800 euros+ in mortgage repayments.

Madeira is absolutely gorgeous. I hope you manage it.

I hope it works out for you. I’d love to live in Madeira after retirement but I’m 49 with stage four cancer so it’s not likely to happen 😢