It’s a sensible question – while in theory, lenders have to take steps to ensure you can afford to keep up the monthly repayments (as much for their own sake as yours), buyers can still end up saddled with a mortgage they can’t afford.
Mortgage calculators don’t usually factor in the other costs associated with a mortgage, such as arrangement fees.
While these are mostly one-off costs, they still need to be considered when deciding whether you can afford a mortgage. They will all be tabled in a mortgage illustration document which your lender should provide.
The rise comes as many wealthy individuals find themselves fully invested in first-tier cities, where prices are at a high plateau, and are now looking at second-tier cities and leisure retreats like Quinta do Lago.
Consequently stock levels remained low, which has been a major driver of price growth as demand has returned.
Central to the appeal of the Algarve is its excellent connectivity to the rest of Europe. Annual passengers numbers at Faro airport exceeded six million for the first time in 2014, an increase of 34 per cent of the previous decade.
The airport provides direct links to 80 destinations across Europe, of which 23 are to UK airports. Faro airport is undergoing a €32million expansion and remodelling programme that will result in a 25 per cent increase in peak passenger flow capacity. Therefore, with its low levels of supply and a product tailored to the luxury second home market, we believe prime Algarve is in the perfect position to benefit from strengthening demand in the years to come.