Mortgages in Bulgaria
buy property in bulgaria
New Estate Finance works with the active lenders in the market, we will consult all of them regarding your application. We have offices in London, Sofia and Varna and are happy to discuss your options over the phone or face to face.‘Pay as You Apply’ – no upfront fees for future stages of the mortgage application process. You pay for each stage as we process it. We will refund your 1st stage ‘Pre-approval’ fee if we fail to find you a lender.
buy property in bulgaria
When should I apply?
You should apply when you know your property is nearing completion or 3 months before final payment is due. Some ‘off plan’ purchases require final payment once the building has reached ‘Act 15’, most require it upon ‘Act 16’. Sometimes known as the ‘Residency Permit’ Act 16 is crucial to achieving a mortgage, please contact us if your property is only at the Act 15 stage or if your developer is demanding payment from you at Act 15, we will still be able to help you.
How much can I borrow?
Despite the current economic climate, it is still possible to borrow 70% of the value of your property, however the majority of applications are only granted around 50%. The value of your property is not necessarily what you agreed to pay for it. An independent evaluator will decide on the value and it is this figure that will be used to calculate all mortgages, not the purchase figure agreed between you and the vendor. Valuations can be more than the purchase amount, sometimes less.
How much will it cost?
Some brokers charge in excess of 2,000 Euros fees and ask for it upfront, however our ‘Pay as You Apply’ mortgage works in a much simpler and more cost effective way. Just four straight forward costs and you only ever pay for the next step ahead:200 Euros for initial approval, refundable if unsuccessful.375 Euros administration fee to make full application on your behalf (in Bulgarian) to the bank of your choice. 100-400 Euros bank application fee varying according to the bank and the product.Up to 1% of the total amount of the mortgage loan upon signing of the contract with the bank. The initial 200 Euro administration fee is 100% refundable should you not receive a mortgage ‘Pre Approval’ offer, as such there is no risk and no fee for just ‘finding out’ if you can achieve mortgage. Every bank charges a varying amount, it is only possible to provide a final figure once a particular bank and mortgage product have been selected.
Key aspects of our mortgages:•
No minimum amount• The value of the property is key, not the earnings of the client• Title deeds value is irrelevant as an independent valuation decides the market value• Up to 70% of the value of the property can be borrowed (depending on region and property type)• Best rates are for shorter term mortgages• From 5-20 years lending• Interest rates from 7.5%Interest Rates:The total amount being borrowed and the number of years over which it will be paid back will vary your interest rate. Options start from around 7.5% and can climb to 9.5%, however for a specific figure a particular bank and product must be selected.
The exact documents you will need to submit will be determined by the lending bank, but most likely it will some or all of the below:• Statement of earnings from Inland Revenue / Tax return• Employment contract • 6 months bank statements • Recent pay-slips• Reference from your Bank• Statement from a credit agency or bureau giving information about all current financial obligations and liabilities from Equifax or Experian Disclaimer: Please note, your property may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt. This is not a UK regulated mortgage.