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» 03.06.2008 Changes to the New Law on the Trade Register
» 02.06.2008 Agricultural Land Up by 50%
» 30.05.2008 Home Prices in Bulgaria – The Fastest Rising In the World In Q1
» 22.05.2008 Sofia Property Market to Reach 25% Growth in 2008
» 13.05.2008 UK Online Research: Bulgaria Properties Still Attractive
» 10.05.2008 Bulgaria The Third-Most Attractive FDI Destination in SEE
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» 16.05.2008 US Travel Writer Picks Bulgaria as Top Budget Destination
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» PROPERTY FOCUS: Bulgaria's Ownership Act changes
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» The Cost of Living in Bulgaria
» Buying property in Bulgaria
» BG property is the countries fastest growing asset
» Financing a property purchase in Bulgaria
» Driving your classic car to your Bulgarian property and all via a pension
» Bulgarian Property, a good proposition or investment Bubble
» Important DSK Mortgage Information
» Property Awards, What are they Really Worth?
» Buying in Bulgaria, UK Mortgages v Bulgarian Mortgages
» Britons Find Bulgarian Prices are Right for Holiday Homes
» Britons Buying Abroad
» Bulgaria Growing in Popularity
» Bulgaria "Top Country for Holiday Makers, Property Investors"
» Residential Prices In Bulgaria Up 36%
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» London Funds to Invest 400M in Bulgarian Properties
» Funds plan Hundreds of Millions for Property Investments
» Brits Fall For Bulgaria's Charms
» The Rise of BG property
» Bulgaria Leader in Real Estate Yields
» Bulgaria on course for 2007 EU accesion
» Bulgaria and Romania to join EU in 2007
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» Bulgaria Names Amongst Top Countries For Investment Opportunity
» British Embassy Advises Investing In Bulgaria
» Bulgaria`s Real Estate Trusts Attract UK Investors
» All Time High In Bulgaria`s Property Sales
» Bulgaria Increasingly Attractive To Foreign Investors
» Bulgarian Property Market May Get Huge Boost From Tax Changes In Britain
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» Bulgaria - Top Country for Holiday Makers, Property Investors
» Low-cost Wizz Air Launches New Routes From London To Sofia, Burgas
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» Bulgaria's Real Estate Market Marks Europe`s Highest Growth

Financing a property purchase in Bulgaria
 Bulgaria is a relatively new opportunity for property purchasing and as such the number of finance options are still very limited. This article will briefly explain your options and make you aware of a couple of areas where you should be vigilant.

If you are not able to purchase in cash (although buying in cash is not always the best option for a property investor) then you are left with two main options;

1) Secure a mortgage against UK property and buy in cash.
2) Secure a mortgage against a Bulgarian Property.

The first option is nearly always going to be the cheapest. UK mortgages can be around 4.5% and you can often remortgage and raise extra money with very few charges. Our sister company Simplicity Financial Services (www.simplicityfinancial.com 0114 276 0200) are independent mortgage advisers and have access to over 6,000 mortgage products, they would be delighted to assist. They can also help with any UK mortgages or mortgages in other countries.

The second option of securing a mortgage against a Bulgarian property is a relatively new phenomenon and as such there are currently only three possibilities. These are provided via the Greek bank Piraeus and the two largest Bulgarian banks DSK bank and BulBank. The DSK mortgage is only available via Bulgarian Home Loans and is far easier to obtain than the other mortgages. If you are a UK citizen and earn a combined provable income (by a payslip or a bank statement) of at least £15,000 and have a clean credit record then you would qualify for a Bulgarian mortgage of up to €200,000 The interest rates are between 6%-7% variable and they are available on repayment only for a term of up to 20 years with a 70% mortgage of the properties value available.

We soon expect more lenders to enter the Bulgarian mortgage market and we shall be working with them to ensure that we can offer their products to our clients.

So those are your options, but what about the dangers;

Firstly Bulgarian mortgages can take up to 12 weeks to complete and hence you must start the work early. Do not commit to complete on a Bulgarian property and expect a mortgage to be ready if you have less than 12 weeks. The charges for delaying completion can often be high.

Secondly, do not agree to purchase a property in Bulgaria or part with any non refundable fees until you are confident you can get a mortgage or raise sufficient cash. No matter how urgent the sales agent says it is, you should never part with non refundable monies until you have sorted out your finances. Sales agents can make it sound like it is easy to get a mortgage when the truth can be very different, this is not underhand just that they are not experienced in the mortgage market.

Thirdly, many property sales in Bulgaria are off plan and hence you will have to often pay not only a deposit but also staged payments. The DSK mortgage will meet staged payments but only for approved developers, so again make sure you are aware of your options before going ahead. Once the property is completed you can then always take a mortgage out for 70% of the valuation and repay money borrowed to make staged payments. Just make sure you have a plan. Be aware that in Bulgaria the valuation of the property is often lower than the purchase price and hence you may have to pay a larger sum using your own cash.

Finally, the process of getting a mortgage in Bulgaria is different to that in the UK, you will often need power of attorney to be in place in Bulgaria to sort out property insurances, completion of the mortgage and other legal requirements, this can be uncomfortable as giving someone power of attorney is rare in the UK but it is common place in other countries.

Bulgarian Home Loans would be delighted to assist with your Bulgarian Plans please call us on 0114 252 5062 or visit our website www.BulgarianHomeLoans.Com. We are the UKs only specialist Bulgarian mortgage company.