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| Mortgage is available for Turkish Proprty -restrictions apply- |
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As Next Home Turkey, we are searching the Turkish Property Market as well as financial aspect of buying a property in Turkey. Untill very recent times, mortgage was not available. It is still its priliminary stages. However, it is not impossible. Although interest rates are not too high. You will find very useful information about mortgage availability in Turkey. If you have any question or whether you are entitled to have a mortgage or not, please feel free to contact us .
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How much can I borrow & what proof of income is required?
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Please note that non-status/self- certification mortgage facilities are not available through the lender. All applications need to be supported by a minimum requirement of proof of income. If employed, copies of you last three month’s pay sleep & your latest P60 and an Employer’s Reference together with your copies of your last three month’s Personal Bank Statements will be required or alternatively if you are self-employed or Director of a Limited Company with a shareholding of 20% or more copies of your last three years Audited Accounts plus copies of Personal Tax Returns for the last two year & copies of your last 3 Personal Bank Statements will be required on application.
Please note that it will also be necessary to obtain a copy of your credit file via Equifax or Experian.
The lender will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.
Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (ie: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 45% of your net monthly income.
Example:
Net joint monthly income £2,500 times 45% of that figure is £1,125 minus existing monthly mortgage payment £700 – No other liabilities. This leaves a balance of £425 for a proposed Turkish Mortgage payment.
Essential notes for purchasing a property in Turkey
1- Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to Turkish legal and administration system.
2- Please note that the lenders will not advance funds to purchase or renovate properties that are currently uninhabitable.
3- It is advisable to arrange your mortgage finance before agreeing to purchase a property.
How we can help you to finance your overseas Home Buying By using The Turkish Property As Security
Based on the valuation or purhase price, whichever is the lower, of the Turkish residential property, UK or Non-UK applicants can borrow up to 80% -in the Turkish Riviera and Istanbul only – for purchases and re-mortgages for Home Improvements in Euros or Sterling only. Mortgages in other parts of Turkey and for other purposes are dealt with on a case-by-case basis.
For all schemes there is a minimum loan of Euro 40,000 and a maximum of £ 200,000. The maxiumum term of the loan is 20 years – available up to age 75. Current interest rates as at 15th August 2006 are from approx. 5.90% Fixed for 1 year in Euros for 6.20% Fixed for 1 year in Sterling. Loans are only available on a Fixed Rate basis over periods of 1, 3 or 5 years and are reviewed at the end of each Fixed Rate period.
Please note that if the property is Rented, the Interest Rate is increased by 0.50% for all schemes throughout the mortgage term.
You will find below an example of a loan to assist you based on a Repayment Mortgage in Euros and to do this must be added the cost of a Mortgage Protection Policy, dependent upon age.
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