Update on Turkish Mortgages

The mortgage market has moved rapidly in the past year, with 8 Turkish Banks now offering mortgages to overseas property buyers. At Aquavista we provide mortgage products via a specialist broker who it best suited to offer best deals and lead you through the entire process. There are currently 2 types of mortgage products available:

MORTGAGE PRODUCT A:

Up to 100% Loan to Value (LTV) * completed property
Up to 100% LTV * Equity release & Re Mortgage available
Off-plan for available for approved projects with stage payments (LTV varies per project)
Security of loan taken on Turkish property
Currency: Euro
Repayment only
1 year fixed 6.9%; 3 year fixed 7.2%; 5 year Fixed 7.5%
Term: Minimum 5 years; Maximum of 20 years
Minimum EUR25,000; No Maximum
Self Employed & Retirees Accepted
24-70 years of age ( must be repaid before 75 years of age)
Eligible to private individuals resident in the UK and Northern Ireland, Holland, Germany, Belgium (also foreigners living in Turkey)
Applications can be submitted up to 4 months prior to property completion
Natural Disaster insurance & Building insurances are compulsory
Life Insurance NOT mandatory
Bank will carry out valuation, upfront fee of EUR400

Notes:
Must have clean credit file (Experian or Equifax)
Bank arrangement fee can be included in loan if required (2% or EUR1,250 minimum)
Early repayment: 10% per year without penalty. Otherwise; difference in the interest rate when new rates are lower
* 100% LTV is based on Execution Value
Fees: Client needs to budget anywhere from GBP1500 to GBP1900 approximately for all mortgage related fees (Banks, Brokerage & valuations, etc. Fees will be fully itemised in clients Mortgage outline document)
Also note client should budget for OFFICIAL CHARGES. Other costs will be the commissions clients will be paying to the estate agent (ranging from 1% to 3%), fees for lawyers (again approximately around 1%) & some other small charges for the local services.
ID & Financials Required:
Standard required documents (Others may be needed by underwriting)
* Copy valid ID (drivers license excluded)
* Past two years P60 statements
* Employers reference letter
* Two months most recent salary slips
* Pension award letter (for retired individuals)
* Two months most recent bank statements (all pages)
* If renting, 12 months cancelled rent checks
* Mortgage payment statement and life insurance payment
* Fully executed divorce decree (if applicable)
* UK Credit report
* Copy of the "Tapu" (Registration of ownership at the Office of Land Registry)
* Copy of the "Iskan ruhsati" aka "Yapi Kullanma Izin Belgesi" (Certificate of
Permission for Building Using)
* Copy of the Purchase Agreement
Self Employed applicants (Others may be needed by underwriting)
* Copy valid ID (drivers license excluded)
* Three years signed personal tax returns
* Last three years corporate returns as well as a year-to-date profit and loss
statement and balance sheet
* Two months most recent bank statements (all pages)
* If renting, 12 months canceled rent checks
* Mortgage payment statement and life insurance payment
* Fully executed divorce decree (if applicable)
* UK Credit report
* Copy of the "Tapu" (Registration of ownership at the Office of Land Registry)
* Copy of the "Iskan ruhsati" aka "Yapi Kullanma Izin Belgesi" (Certificate of
Permission for Building Using)
* Copy of the Purchase Agreement


MORTGAGE PRODUCT B:

Max 75% Loan to Value;
Currently 8% standard variable (buy to let will be 8.5%)
Term of loan is up to 15 years;
**Completed projects & off plan projects 6 months from completion
Security of loan taken on Turkish property
UK & Northern Ireland citizens;
No min or max loan value;
Age from 18 years old can apply, no max age limit
Note: GBP475 early repayment costs if paid fully within the first three years (nothing afterwards).
** This bank as yet is not in the position to offer off-plan mortgages, however they are prepared to assist us by giving a Formal Letter of Approval (subject to successful valuation and underwriting) that will last for 6 months (extended after 180 days, whereby military approval, completion of property, Life insurance will need to be met to extend the loan to the six months. During this period, either the Banks off-plan product will become available (which is their plan) or that the client’s project will be completed within 6 months time frame, and the extended formal loan letter of offer will suffice.
Fees: Client needs to budget anywhere from GBP1500 to GBP1900 approximately for all mortgage related fees (Banks, Brokerage & valuations, etc. Fees will be fully itemized in clients Mortgage outline document)
Also note client should budget for OFFICIAL CHARGES. Other costs will be the commissions clients will be paying to the estate agent (ranging from 1% to 3%), fees for lawyers (again approximately around 1%) & some other small charges for the local services.

Great features of this product explained:

The advantages of this particular lender is that they will
1) be doing initial processing of applications via a UK office
2) with English speaking staff
3) no minimum loan or maximum loan values
4) Any UK resident over 18 is eligible
5) penalty fees are minimal for early exit
6) one of the five top banks in Turkey
7) Clients with properties still being constructed, and have a completion date within 6 months can now be eligible to receive a mortgage, & security of loan taken over Turkish property

ID & Financials Required: is as follows;
1)Proof of ID Valid Passport(s) or UK Driving license(s). If copies are provided these must be certified by an authorised person (your lawyer, or local official, or your bank)
2)Proof of Address(es) utility bills (except mobile phone bills), dated in the last 3 months
3)Proof of income Last 3 months’ pay slips, or other official form of documentation (where possible), and latest P60. If self – employed a copy of the latest tax return, & last 3 years’ audited accounts with a letter from your accountant confirming the profit figures
4) Bank Statements Dated within the last 3 months,& including details of the applicant(s)

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