You may be unsure whether you should take out a Greek mortgage or a British mortgage if you are buying a home in Greece.

In reality, there is not a “right” answer – it depends on your circumstances.

Most people will probably still be receiving their income in the UK and may well still have a mortgage on a property in the UK. If that is the case, then you have two choices:

• If you have enough equity in your British home, remortgage it and use the money to buy your Greek property for cash – this will be quicker and easier than a Greek mortgage
• If you don’t want to use your existing home to fund your Greek property, there are a number of UK lenders who will advance you a mortgage secured on your Greek property – perhaps the best of both worlds

If you will be receiving your income in Euros, a Greek mortgage might be the best answer – as having your income and your mortgage payments in the same currency prevents you being affected by exchange rate variations

Getting A Mortgage In Greece

It is not particularly difficult to get a Greek mortgage – and since Greece adopted the Euro as its currency in 2001 it has got easier still.

You may find that it takes a little time for your mortgage application to be approved, however – Greek bureaucracy can be a little slow!

There are no legal restrictions on foreign buyers taking out Greek mortgages, but some lenders will not offer you the same terms as they would a Greek lender, so it pays to do some research and shop around a little before making your choice.

Typical terms and conditions for a Greek mortgage might be:

• Maximum term of 30 years, or until your 75th birthday
• Maximum loan of 80% of the property’s valuation
• Capital repayment mortgage – interest-only mortgages are not generally available
• Your existing outgoings should not be more than 35% of your net income

The proof of income requirements are much the same as in the UK – we’ve provided some examples below.

 

If You’re Employed

If you’re employed and applying for a mortgage in Greece, you will be required to provide proof of your income and your outgoings – typically:

• Last 2 years’ P60s or payslips
• Last 6 months’ personal bank statements (showing income and outgoings)

You will also need to provide a copy of your passport.

If You’re Self-Employed

If you’re self-employed, the requirements are similar – there are no self-certification (non-status) mortgages in Greece, so you will need to be able to provide copies of your audited accounts:

• Last 2 years’ audited accounts / tax returns
• Last 12 months’ business bank statements
• Last 6 months’ personal bank statements

 

Rental Income

Greek banks will not take potential rental income into account when considering a mortgage application – you will need to be able to afford the property without renting it out.

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