Getting
A Mortgage In Turkey
Should
I Get A British or Turkish Mortgage?
Mortgages
are available to foreigners in Turkey, and if you are planning
to live in Turkey this may well be the best option. However,
if you will be continuing to live and work in the UK you may
find that it is easier to fund your Turkish property with a
British mortgage or by remortgaging your existing UK home.
By withdrawing equity from your UK home or taking a loan in
the UK, you will be able to buy your Turkish property for cash
and avoid the time-consuming process of applying for a Turkish
mortgage.
You can't secure a UK mortgage on a Turkish property, but you
may find specialist overseas investment companies who will arrange
a suitable specialist loan or mortgage.
Getting A Mortgage In Turkey
The
main difficulty in getting a mortgage in Turkey is the slowness
of the process.
If
you are planning to buy a Turkish property with a mortgage,
it is wise to start your mortgage application before you agree
to purchase a property to ensure you do not delay the sale later
on.
Turkish mortgages are also only available in certain areas of
the country - normally major towns, cities and seaside resorts.
You
are very unlikely to be able to secure a mortgage for a remote
property in rural Turkey - but in reality, few foreigners want
to buy in these areas and prices are very low for those that
do, meaning a mortgage may not be needed.
A Turkish mortgage typically has the following terms
and restrictions:
-
Repayment only
-
Maximum terms of 15-20 years, or until aged 75
-
Maximum loan value of 70% - 80% of property's value
-
Fixed interest rate throughout
-
Your total outgoings (including mortgage payments) should
not be more than 45% of your net monthly income
You may find that these terms vary a little between lenders, but
this should give you an idea of what to expect if you decide to
seek a mortgage from a Turkish lender.
If You're Employed
Your Turkish mortgage lender will need to see proof of your income
and outgoings, and is likely to ask for:
-
6 months' bank statements
-
Proof of income (e.g. employer's reference)
-
Loan/other credit statements
-
Most recent UK mortgage statement
In addition, you will need to provide a copy of your passport
when applying.
If You're Self-Employed
Non-status (self-certification) mortgages are unheard of in Turkey,
and self-employed buyers will have to provide, as a minimum:
-
Audited accounts
-
Last 6 months' business bank statements
In addition to this, other evidence of income and outgoings
may be required, as will a copy of your passport.
Rental Income
Rental income from a holiday home is unlikely to be considered
in a mortgage application unless you are making the purchase
as a business, rather than an individual.
Read
On
•
Introduction
• Buying A Property
In Turkey - 4 Easy Steps
• Should I Get
A British or Turkish Mortgage?
• Getting
A Mortgage In Turkey
• Other Things
To Consider Before Buying In Turkey
• Glossary of Key
Turkish Terms
Buying
Overseas Property and Mortgages for UK Citizens
