For Buying Property in Turkey Mortgage Options and Financial Requirements to obtain from mainstream lenders and developers offering payment plans

Property Sun Turkey can help individuals of any nationality to buy any kind of residential property, detached villas, apartments, penthouses or stone cottages in the most popular areas of Turkey. Our product range and excellent service is designed to get you moving in the shortest time possible. We offer a pre-qualifying check so you can go out viewing property for sale in Turkey with the confidence of having funds available and the budget for you to work too.

Some lenders will not lend on garden or ground floor apartments or flats but there are always options if this is the type of property you wish to purchase.

Other points to take into account most lenders will not lend on off-plan developments however at Property Sun Turkey because we have many exclusive arrangements with good financially sound developers we can obtain off-plan mortgages which also give the peace of mind and added protection that the lender will have a charge on the property so it is in the lenders interest to have checked the developer out to ensure they are financially sound and likely to finish the property you are buying.

A Brief Overview of Present Rates and Availability

Presents Rates: From 4.30% to 6.6% usually in either Sterling or Euros, Fixed and variable rates are available the process requires the usual financial details and non-status mortgages are not available at present. Any advertised non-status mortgages or payment plans are usually offered direct from the developer and usually are for a 5 year period maximum.

The minimum loan amount is usually £30,000; smaller amounts are sometimes available but usually with higher rates.

The Maximum loan isn’t usually limited on the amount but on the percentage of the property value and presently the maximum is 75% for a Mortgage in Sterling, and 70% from a Mortgage in Euros

The main lenders for Turkey are usually the Banks in other European countries as UK Banks don’t offer any mortgages at present. There are Mortgages available from the Turkish banks which are sometimes a bit more liberal now with lending but the terms and rates are still higher than available elsewhere but can be more flexible in the lending criteria if using Property Sun Turkey as the local banks still work the way banks used to work in the UK and our local property consultants know the managers who you can go and discuss your requirements

Maximum Terms for the European Banks are usually a maximum of 20 years and the finish of the mortgage must be before the age of 80.

Mortgages from the all sources whether using a Turkish Bank to buy your property or one of the European Banks are all Repayment Mortgages and no interest only are not available.

We can also provide products with no early redemption penalties at these rates meaning you can overpay the mortgage or pay it in full should you want to sell before the term of the mortgage ends, but it is wise to check as some of the penalties can be extremely large.

Can I get a Mortgage, the answer is probably yes the question is really can I get a mortgage with reasonable interest rates

How much can I borrow?

As long as the property values up then there is no maximum but some properties will always be down valued by the mortgage companies this is very much dependent on the developer if known to the lender or some lenders are particularly more pessimistic with property values especially in areas that have lots of properties on the market. Local can be more flexible again especially if they work closely with the developer. The amount you can borrow though is judged on your affordability. As we have access to many lenders, the way this is calculated can vary from lender to lender. If you would like us to calculate your maximum you could borrow then we will be pleased to go through a pre-approval that doesn’t require credit reference checks at this stage.

What evidence of income and financial details do you need ?
If you are employed:
• Your last three month’s payslips
• Your latest P60 or Employers Reference
• Your last three month’s personal bank statements

This is the usual some just require copies which can be verified as true copies from a solicitor again though this can vary from lender to lender

If you are self-employed • Your last two year’s audited accounts
• Your personal tax returns for the last two years
• Your last three month’s personal bank statements

This can be flexible and again local Turkish Bank Branches can be more approachable.

It may also be necessary to obtain a copy of your credit file via Experian www.creditexpert.co.uk

How is the mortgage repaid?

If you borrow in Euros or Sterling, repayments can be made from your UK bank account by direct debit or through a Turkish Bank account which is always worth setting up in any event when buying a property in Turkey. If you are repaying in Euros, an account with MoneyCorp or the likes would need to be set up.

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