A loan to buy ready-made homes? CGD offers a blended rate

with better energy efficiency than traditional houses. They can also be built faster and according to the needs of the family.

The good news is that there are several banks in Portugal willing to provide financing for the purchase of pre-built homes.

CGD offers a financing solution for buying, building or renovating a pre-manufactured home, whether it is a permanent residence or a vacation home.

This financing solution for pre-manufactured homes has its own peculiarities. Firstly, the maximum mortgage term is up to 25 years, provided the customer's maximum age does not exceed 75 years. The minimum amount''financing is €5,000 and the maximum amount is 80% of the appraised value and 90% of the investment (the lower of the two). If it is a vacation home, the maximum limit is 80% of the appraised value or investment.

The CGD mortgage loan offer for pre-manufactured homes is available at different types of interest rates:

Variable rate: linked to the Euribor rate with an EFSP of 6.3%;
Mixed rate: interest rate fixing for 5 years and Euribor rate with an EFSF of 6.1%;
Fixed rate: for 25 years with an EIR from 5.8%;

The desire for a blended rate is increasing in Portugal.

When choosing a mortgage loan to purchase a pre-manufactured home, it's also important to pay attention''attention to all types of interest rates.

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Indeed, more families are applying for mixed rate loans instead of variable rate loans, as was the case until mid-2023.

"In August, new mixed rate mortgage loans (i.e. fixed rate loans for the initial contract period followed by a variable rate period) accounted for 51% of the total number of new mortgage loans," the Bank of Portugal said in a note published last week.

But why is this happening? "The stability offered by mixed/fixed rates is causing many customers to defend themselves in an uncertain market. In addition, mixed/fixed rate offers can be more favorable than those with''variable rate at the beginning of the mortgage loan, which also contributes to increasing the demand for this type of solution,' explained Miguel Cabrita, responsible for idealista/créditohabitação in Portugal, in an interview. He also emphasizes that "the credit intermediary can help in the whole process" to make an informed and suitable choice for the family.