Mortgages in Turkey

We get a lot of requests from customers asking about the best way to obtain finance for funding their property purchase in turkey.

At long last it is possible to obtian a mortgage on a property in Turkey.

There are now a number of UK companies offering mortgages on property in Turkey and although there will be some variations in each ones terms and conditions the following are a general guide as to what you can get expect from a Turkish mortgage:

- Maximum 75-80% LTV (Loan to Value ratio)

- Available for the following areas:
Istanbul - Akbuk - Alanya - Antalya - Aydin - Bodrum - Datca - Didim - Fethiye - Izmir - Kalkan - Kusadasi - Mahmutlar - Mugla
(Although other areas will be considered up to a maximum loan to value of 60% - 70% on a case by case basis)

- Minimum loan amount: €40,000 - making minimum Purchase Price of €50,000.

- Maximum loan amount: €200,000 - making maximum Purchase Price of €250,000

- Fixed Interest Rates only (generally starting from about 6%, different lenders vary) - no variable rates available fixed for 1, 3 or 5 years only

- If the property is to be rented out Interest rate will be higher

- Repayment terms ONLY (no Interest only available) of 5 to 20 years

- Minimum age 24 upon application to Maximum age 75 upon completion.

- 1st time Buyers? YES.

- Staged payment funding available? No, mortgage funds will not be released until the construction of the Turkish property is fully completed and legal registration of the Turkish property has taken place.

- Equity Release Mortgage (from existing Turkish Residential property)? Yes, but ONLY if the property is 'mortgage-free'.

- Affordability: 45% of NET monthly income - less existing monthly commitments (if clients also have existing 'buy to let' properties, then the rental income received from these, must cover a minimum of 120% of the monthly mortgage amount due).

- Incomes considered: All employed salary & self-employed incomes only.

- Eligibility: UK resident & UK nationality , Dutch resident with a) Dutch nationality or b) indefinite residence permit , German resident with a) German nationality or b) indefinite residence permit , Belgium resident with a) Belgium nationality or b) indefinite residence permit. Irish only if Northern Ireland residency and nationality & ALL applicants must have a 'clean credit history' - no existing Defaults or CCJ's.

- Lenders will NOT usually 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 (i.e.: 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.

Please contact us if you require a turkish mortgage. We can put you in touch with lenders who can help.



Depending on your circumstances you may get a better rate if you remortgage your home in the uk.

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