Hungarian mortgage issues - any help?

Hi there,

I am looking at putting an offer on a property in Hungary but have a few reservations regarding the mortgage.

If I put an offer in do I then have to pay my 10% deposit straight away?

Whilst I have had a mortgage in principle approved my broker says that I can't get a definant mortgage answer until after the initial contract is signed.

Has anyone had any issues regarding mortgage complecations in Hungary?

What if the mortgage provider takes an age in transferring the funds, could I lose my deposit?

Also what is the standard LTV %. I have been offered 70% but read that the bank usually give less thsn this?

Are you getting a mortgage in Hungary ? I thought the rates were very high..... around 10% if memory serves me right.

I bought off plan last year and from memory - Hungarian Banks will only lend up to 70% if you buy as an individual and 50% if you form a company and buy through that. (You can only buy one property in Hungary as a non-resident individual)

Good luck with it...............

Cheers
Dicey

Dicey did you sign the initial contract and hand over the deposit whilst only with an approval in principle from the mortgage lender?

ringledman said:

Dicey did you sign the initial contract and hand over the deposit whilst only with an approval in principle from the mortgage lender?

Click to expand...

Hi Ringledman

I have signed contract and paid deposit (30%) but have no mortgage approval yet. I do not have to pay the balance until completion (estimated December 2007) so I'll decide nearer to the time how to fund the balance. Contract also allows me to sell / 'flip' at any time prior to completion.

I am buying through a reputable D4 estate agent who have said they will help arrange finance locally if required but unless I sell in the meantime - I'm not going to think about it much for another year..........

Cheers
Dicey

estate agents will not be able to sort out finance in hungary ,what they will do is get in touch with a mortgage broker in ireland and he will want you to release equity in an irish asset like your family home. rates are better of here, once you buy a property of there you can open a deposit a/c and the rate is about 8-10% so you borrow the amount and lodge it to your huf forient you can make a nice few quid while waiting for the property to be built ,best of luck

Do you think the current riots in Budapest will weaken the forint?

not the riots per se but the reasons behind them. government finances are in a very poor state and this government had been pushing a needed austerity package which may be on hold given that the PM has admitted lying in order to get elected. economic fundamentals are weak and so what do you think?

Europhile, there's an interesting article here in the BBJ, which suggests that the government and the currency will weather the storm:


What's being currently reported about the government lies is nothing new. It hasn't been a secret for a long time that Gyurcsany lied about the state of the economy to get re-elected and now, just before the local elections, a tape has been strategically leaked to the media, which due to last night's riots, has been given European coverage.

The forint is already very much weakened since the Spring and the current poor economic situation is largely to blame. In my opinion, it should gain whenever the political situation calms down.