Should I Get A UK or Cypriot Mortgage?

For many people, it may be easiest to fund your house in Cyprus with a UK mortgage or loan, or by remortgaging your UK home (if you have enough equity in it).

For others – especially if you will be spending most of your time in Cyprus – it might be best to get a mortgage from a Cypriot bank.

Either option can work well, but remember to factor in considerations like the exchange rate (CY£ is tied to the Euro, not the pound) and what currency your income will paid in.

If you have a pension being paid into a Cypriot bank account, for example, it makes sense to have your mortgage with a Cypriot bank too.

If you’re unsure of your mortgage options, it can be a good idea to talk your situation over with a UK mortgage broker who specialises in overseas property mortgages.

They will be able to explain your choices to you and give you an idea of how much you will be able to afford to borrow.

Getting A Mortgage In Southern Cyprus

Building societies don’t exist in Cyprus, so your only choice is the banks, which all offer mortgages. As Cyprus is a member of the EU, there are not too many obstacles to getting a mortgage – typical mortgage terms might be:

• 30% minimum deposit
• Mortgage term of up to 15 years, or until your 65th birthday
• Repayment mortgages only (interest-only available while a property is under construction)
• Life insurance cover required for mortgage holder
• Mortgage payments can be up to 40% of your net monthly income

 

If You’re Employed

If you are employed in the UK, you will need to be able to provide proof of your income, outgoings, employment status and any other financial assets you intend to refer to in your mortgage application.

Typical documents might include:

• Recent payslips
• Recent personal bank statements
• Reference from your employer stating your salary and that you are a permanent employee

If You’re Self-Employed

It’s always a little harder for self-employed people to find mortgages and you are unlikely to find a self-certification deal in Cyprus.

However, if you have audited accounts for your company and can demonstrate the stability of your income, you should have no problems.

Typical documents requested by lenders are:

• 2 years’ audited accounts
• 6 months’ business and personal bank statements

Rental Income

Cypriot lenders do not normally take into account potential rental income from a property – they generally look at whether you can afford the property without renting it out.

 

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