Bulgaria Mortgage Information Required

Apply for a Bulgarian Mortgage now.

The Bulgarian Mortgage market is relatively immature at the present time. However banks are starting to catch up quickly and Interest rates have recently been reduced to 6.2% from 7%. However for OFF PLAN properties the lowest rate available is 7%. Bulgarian loans are now available for up to 25 years for loans over €100,000 Click here to Apply for a Bulgaria Mortgage - Mortgage Calculator In conjunction with Assetz Finance, we bring you a specialist Bulgaria Mortgage Service. Below is all the information you will need to apply for a Bulgarian Mortgage.

We can also offer French Mortgages, Spanish Mortgages, Cyprus Mortgages, Canadian Mortgages and, of course, UK Mortgages as well as Secured Loans. Financing the purchase of property in Bulgaria may take several forms depending on individual circumstances. For example, you could fund the purchase with a first or second mortgage on your existing UK property or take out a mortgage from a Bulgarian lender. Bulgarian mortgages do not follow the same pattern as the UK.

The loan is limited to 75% of the assessed value of the property and by the capacity of the borrower to repay the loan, strictly calculated in accordance with Bulgarian rules that are very different from the UK. Standard repayment mortgages, where you repay both the capital and interest, are normal practice. Interest-only and repayment mortgages are now available with typical term of 20 years. As Bulgaria is not yet part of Europe, one factor to take into consideration is that interest rates are currently at 6.2% and the amount you borrow is usually in Euros.

Mortgage applications generally take 2 to 3 months to go through. Agreeing a mortgage in principle can be done over the phone and usually takes a week. NB- Funding is now available for off plan properties still being constructed. We can recommend banks that will fund the purchase from completion of rough construction/roof. This payment will coincide with the signing of the notary deed. Realistically the notary deed signing will have to happen first and then the money from the bank would be paid to the developer within 7 days. This will come with a bank confirmation to pay the final amount on completion (depending upon valuation). Bulgaria mortgages are available for UK and Irish Nationals (and non-UK Nationals on a case by case basis) for either property purchase or re-finance for home improvements. Mortgages for other purposes may also be considered.

Type of Bulgaria Mortgage: Repayment basis only

Minimum: €25,000 - Minimum Purchase Price €36,000, No Maximum, but must not exceed 70% of valuation or purchase price (whichever is the lower).

Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income). Please note however, it is not always the case that the Lender will take all or part of these incomes into account when determining the maximum loan available). Non-Status loans are currently not available.

• Term: Maximum 20 years - up to age 70
• Currency: Euros only
• Current Interest Rate: approx 7.00%

Example Bulgaria Mortgage: Repayment Mortgage of approx €70,000 over a period of 20 years at an interest rate of approx 7.00% in Euros = approx €551.00 capital and interest per month = a total approx amount payable over term of €135,140 including capital, interest, arrangement and survey fees" Please note that there are non-status/self-certification mortgage facilities accepted by some lenders at a rate of 9.9%.

All applications need to be supported by a minimum requirement of proof of income. If employed, copies of your last three months' payslips and copies of your latest P60/Employer’s References together with copies of your last three months' personal bank statements will be required or alternatively, if you are self-employed, copies of your last three years' Audited Accounts and copies of both your last three months' business and personal bank statements will be required on application.

The lender will NOT take into consideration any proposed rental income from the property for Bulgaria 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 (e.g.: divorce) payments together with your proposed Bulgarian mortgage payments must not exceed 40% of your net monthly income.

Example: Net joint monthly income £2,500 times 40% of that figure is £1,000 minus existing monthly mortgage payment £300 – No other liabilities. This leaves a balance of £700 for a proposed Bulgarian mortgage payment. Please ensure that you have full title to the Bulgarian property on completion and that the appropriate documents are available for the lender. Finance will be granted only for completed apartments where the state acceptance commission has issued a valid “use permission certificate”.

In Bulgaria, although a foreign legal entity (limited or joint stock company etc.) is entitled to own titles of land, a foreign person is not. However, a foreign person may have full rights on an edifice, as he/she may own title of an edifice without owning the underlying land.

It is essential that you take the appropriate legal advice before signing a preliminary purchase agreement or paying a deposit, as if purchasing in your own country.

You must have your own independent solicitor representing you throughout the purchase. This solicitor must meet the lenders' requirements in respect of representation as “agent for service of process”. If you wish we will recommend an experienced UK solicitor who specialises in Bulgarian law.

Please be aware that the lawyer/notary may be incorporating, within his charges, costs for assigning the Bulgaria mortgage, and you should establish with the lawyer/notary the actual cost before proceeding with the loan application.

With interest rates for off plan properties currently at 7%, a lot of investors choose to release equity in the UK from existing property to fund a purchase. We can assist with any financial questions you may have.

Apply for a Bulgarian Mortgage now.

To speak with a member of the Assetz Finance team please call 0845 400 8000