Mortgages in Cape Verde

Mortgages in Cape Verde

A guide aimed at overseas property buyers seeking a mortgage for property in Cape Verde

"Africa's Cape Verde Island are a low-cost rival to the Caribbean" The Independent 29.11.06

The Cape Verde property market is still relatively unexplored, compared to more established markets of Europe. Cape Verde is emerging as one of the international property stars, being such a highly attractive location. There is a stunning coastline studded with white-golden sand beaches.

Obatining a mortgage for property in Cape Verde  

Mortgages include Residential and Investment Properties

Types of Mortgage: Repayment only

Minimum: loan amount N/A - No Maximum, but must not exceed 70% of valuation or purchase price (whichever is the lower)

Proof of Income: Required in all cases. Mortgages need to be supported by a minimum requirement of proof of income, i.e. if employed – copies of your last six month’s payslips & copies of your latest two P60’s together with copies of your last 6 month’s Personal Bank Statements.  Alternatively if you are self-employed – copies of your last three years Audited Accounts & copies of both your last 12 month’s Business and last 6 month’s Personal Bank Statements will be required on application.

Bank Account required to be opened with lender

Term: 25 years up to age 60

Currency: Capeverdean Escudos CVE

Current Variable Interest Rate: from approx 9%, dependent on LTV (Euro mortgages possible indexed to Euribor)

Example for CVE Mortgage: Repayment mortgage of approx CVE100,000 over a period of 25 years at an interest rate of approx. 9% = approx CVE839 capital and interest per month = a total approximate amount payable over the term of CVE251,700  excluding other fees.

Obtain a Cape Verde mortgage quote

• Mortgage quote

Mortgage Advice 

Before you enter into any property purchase you should consider the following things:-

Appoint a good lawyer who can carry you through the process till completion

Only buy what you can afford. Do not overlook Foreign Currency Fluctuations and all closing costs.

Make sure you have a good Idea of what mortgage you will be able to secure prior to entering into any contract to buy

Remember that when taking out an overseas mortgage you will have to declare full details and your assessment will be made on the affordability to pay and not income alone