Intro
Since Bulgaria's accession into the EU the banking sector has
experienced growing demand from foreign investors. As a result,
increased competition between the banks has driven down interest
rates and created better terms for foreign investors looking to
finance their investment in Bulgaria. Mortgages are available on
property and on land with interest only options.
Availability
In Bulgaria the mortgage application necessitates proof of
income so self certification is not an option. As with most Eastern
European countries the use of a broker will speed things up and
will be a valuable commodity. The normal amount they will loan is
up to 75% LTV for both purchases and re-mortgages but please note
that they will only lend once property is completed, therefore they
will NOT make stage payments to developers.
Cost
There are no currency options available in Bulgaria making the
interest rate directly linked to the Euribor. Typical rates track
this with a margin of approximately 2% making the pay rate around
7%. The early repayment charges apply for the first 2 years and the
banks' arrangement fees are usually 1% of the loan amount.
Bulgarian mortgages are available over a term of 25 years keeping
monthly repayments low.
Application Process
The application process takes about 12 weeks to process and can
be longer if you decide to do it without the help of a broker. Many
of the banks have offices in London making the signing of documents
fairly easy. In summary the process is on par with other Eastern
European countries and is pretty straight forward.
Mortgage Finance from Frontiers Financial Services
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