Getting A Mortgage In Poland

Should I Get A UK or Polish Mortgage?

If you will be using a mortgage to buy your Polish property, you should decide very early on where that mortgage will be coming from. The reason for this is that Polish mortgages can take a little longer than expected to be approved - and it if your funds are not available on the date stated in your contract, you stand to lose your deposit and your new home.

For UK buyers who will continue to live and work in the UK once they have bought their Polish home, using a UK mortgage is probably the best option.

There are several reasons for this, mainly:

Flexibility - you will have a wider choice of mortgage products and may also have the choice of remortgaging your existing home and buying your Polish property for cash
Exchange rate protection - at present Poland is still using the Zloty, and payments on a Polish mortgage would vary unpredictably with exchange rate fluctuations

As a rule of thumb, it is often easiest to have your mortgage in the same currency as your income, but everyone's circumstances are unique.

If you aren't sure how to decide, it may be a good idea to sit down with a mortgage broker specialising in overseas mortgages. They will be able to explain your options to you and confirm how much you will be able to borrow.

Getting A Mortgage In Poland

Getting a mortgage in Poland is not especially difficult, but it can sometimes be a slower process than expected - it's important to start your mortgage application as early as possible to ensure that you don't delay the completion of your purchase.

The choice of mortgages available in Poland is much more limited than in the UK and non-residents tend to get slightly poorer terms and conditions than residents due to the higher risk they present - put simply, you are more likely to default on a loan in another country than you are in your own country.

A Polish mortgage lender will typically offer:

60% - 80% of the value of the property
Arrangement fee of 0.5% - 3%
Full repayment mortgage
Monthly payments no greater than around 35% of net income
Mortgage term of 20-30 years
Variable Rate

Interest-only mortgages are not available in Poland - the only exception to this is for mortgages secured on new builds. While the property is being built, the lender will charge interest only.

If You're Employed

If you're employed and seeking a Polish mortgage, you will need to provide proof of income and outgoings and proof of your employment status - for example:

A reference from your employer stating your position and salary
Last 3 months' payslips
Last 3 months' bank statements

If You're Self-Employed

Non-status (self-certified) mortgages are not available in Poland, so if you are self-employed and seeking a Polish mortgage you will need to be able to verify your businesses financial status:

Last 2 years' audited accounts
Last 2 years' tax returns
Last 3 months' business and personal bank statements

You may also need a letter from your accountant providing information about your personal drawings from the business.

Rental Income

While rental of your property may be possible, potential rental income will not be included in mortgage calculations by Polish banks. This means you need to be able to afford the property without the rental income.

Read On

• Introduction

• Buying A Property In Poland – 4 Easy Steps

• Should I Get A UK or Polish Mortgage?

• Getting A Mortgage In Poland

• Other Things To Consider Before Buying In Poland

• Glossary of Key Polish Terms

Buying Overseas Property and Mortgages

Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below


Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel

[improve this article]

Getting A Mortgage In Poland

Read On

Browse over 200 Free Mortgage Tips

Site Help