| Financial
Services > Mortgages
> Holiday
Homes > Cyprus
Cypriot property
as security
If you need finance
to purchase a property
in Cyprus , then
Justcredit.biz
can help, we can
give you the advantage
of seeking advice
from a team of licensed
credit brokers,
who have over 20
years experience
in this field. Depending
on your circumstances,
you may be able
to raise a repayment
mortgage on the
property in Cyprus
.
Based on the valuation
or purchase price
(whichever is lower)
of your Cypriot
property, it is
possible for you
to take a loan for
up to 70% of its
value in all major
currencies, for
the purpose of purchasing
a new property or
re-mortgaging an
existing one for
home improvements
(a re-mortgage for
any other purpose
will be looked into
on a case by case
basis).
The minimum loan
that will be considered
is £20,000
and the maximum
is CYP 150,000 over
a repayment period
of no more than
30 years. This is
available to individuals
up to the age of
65 . Current interest
rates as at 11 th
July 2003 are from
approx 2.00% + LIBOR.
The following example
is based upon a
repayment mortgage
in sterling, and
does not take into
consideration the
cost of a mortgage
protection plan.
Repayment
mortgage of
£ 50,000
over a period
of 30 years
at an interest
rate of approx
5.10% = £
553.00 capital
& interest
per month
= a total
approximate
amount payable
over a term
of approx
£ 68,360
including
capital, interest,
arrangement
and survey
fees.
The income
criteria is
variable
Bank
Reference
and Employers
or Accountants
reference
if self-employed
Existing
borrowing
in the UK
and Overseas
will be taken
into account
|
Written quotations
are available on
request.
How much
can I borrow &
what proof of income
is required?
There are no non-status/
self-certification
mortgage facilities
available in Cyprus,
however renting
out your property
is permitted, therefore
all loans need to
be supported by
a minimum of, proof
of income. If you
are employed, you
will need to produce,
your last three
months payslips,
P60/employers reference
and your last 6
months Personal
bank statements.
If you are self-employed
you will need copies
of your Audited
Accounts together
with you last 12
months business,
and 6 months personal
bank statements.
The Lenders in
Cyprus will not
take into account
any proposed rental
income from the
property that you
wish to buy.
Your loan will
be based on your
personal (or joint)
'net' pay, and is
calculated on an
affordability basis.
For you to be considered
by the lenders in
Cyprus you total
out-goings must
not exceed 35% of
your net monthly
income.
A simple example;
If your total net
monthly income is
£1,000, your
total out-goings
must not exceed
£350, you
must have £650
per month to be
put towards the
mortgage repayments
to be considered.
A guideline
for purchasing a
property in Cyprus:
• Ensure
that you have full
ownership of the
property upon completion,
and that the relevant
documents are available
for the lender.
• With
newly constructed
properties, ensure
that you know the
date that the property
will be registered
to you. The lender
cannot lend on the
security of the
property until it
has registered.
• Due
to the Cypriot legal
and administrative
system, there may
be slight delays
on securing your
loan, despite the
fact that all reasonable
steps will be taken
to avoid this. So
be prepared.
• Make
sure you have researched
every possible cost
that you may incur,
whilst purchasing
a property in Cyprus
. Note, you may
be charged by the
government in addition
to the lenders legal
costs (the Lenders
costs however are
usually specified
when the Lender
offers you the mortgage).
• Unless
you are very experienced
in purchasing abroad,
it is very important
that you seek some
sort of legal advice
before signing the
contract for a property
or paying a deposit.
The Lender will
require a copy of
these signed documents
together with an
application form,
however you will
be able to sign
these documents
'subject to mortgage
finance', once the
contract is signed
it is legally binding,
so if you do not
state this and the
Lender does not
wish to do business
with you, this could
be a huge problem
• Legal
advice may be costly,
so ensure that you
receive a complete
quote, incorporating
all costs, before
applying for a loan.
• A
Cypriot bank account
will be required.
• It
is advisable that
a life assurance
policy is set up
on all mortgages.
• Properties
can be purchased
by an individual
or in joint names.
|
