The scheme is spearheaded by UK-managed property developer Oceânico Developments, Algarve, Portugal and by mortgage provider, Barclays, Portugal to offer a specially tailored mortgage.
Simon Burgess, Oceânico Developments Director, said: "The Oceânico and Barclays arrangement represents a unique opportunity for UK investors. No repayments over the first two years of the mortgage lifespan combined with a strong lettings market means buyers stand to make enough in the first
two years of their purchase to cover costs for the third year when the mortgage repayments begin."
The last phase of the four-star properties go on sale this week at two Oceânico resorts (Estrela da Luz and Vila BaÃa in Praia da Luz) with prices ranging from EUR155,000 (average 600ft2) for a studio apartment to EUR585,000 (average 2500ft2) for a three-bedroom deluxe apartment.
The specially tailored Barclays mortgage offers a two-year interest free period combined with a two-year capital repayment holiday - dependent on a 30 per cent deposit.
Find out more about the Barclays Mortgage Rates offers in different mortgage products.
The popularity of buying property abroad continues apace with more than 112,000 Brits doing so in the past 12 months.* More than 10,000 bought in Portugal alone and have reaped the rewards of capital appreciation rates in excess of 10 per cent over the past three years. **
In addition, AHETA (Association of Hotels and Tourist developments in the Algarve) research reveals that four/five star resorts achieve the highest occupancy rates (67 per cent) for rental in Portugal. Based on this finding, a four/five star apartment rented out 67 per cent of the time could translate to 35 weeks rent per annum for buyers.
Simon Burgess, continued: "We are catering for a new breed of investors who are turning to foreign shores to make their pound travel further."
Alex Dyce, Chief Operating Officer for Barclays Portugal, said: "We are delighted to announce our intention to grow in the Algarve and at the same time launch this specially tailored mortgage with Oceânico that clearly demonstrates our intent to attract new customers.
"Britons' appetite for overseas property is at record levels and shows no signs of abating despite talk of a softening housing market in the UK.
These factors will continue to make Europe an attractive place for people to buy property."
The offer has a market leading interest rate at Euribor plus 0.75 per cent or one per cent depending on whether the ultimate mortgage term is 15 or 20 years.
In addition, a full banking service for foreign buyers at Barclays Bank in the Algarve is also available to meet everyday banking needs such as payment of utilities, insurance and so on.
Barclays has a stated strategic aim to grow its footprint in Europe and has recently announced plans to open three new branches in the Algarve in early October. The new branches in Almancil, Vilamoura and Lagoa are Barclays' first branches on the Algarve and have been opened to serve Britons looking to buy property in the area.
