Hungarian Mortgage

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UKPete

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I am purchasing an apartment in Budapest district 7, Renaissance House project. The apartment is due for handover in early May. I have been trying to obtain a mortgage through Fidentia. The bank that they deal with are Erste.

The story that I have been given is that the developers and Erste can't come to an agreement as to the financing details and so the developers won't let Erste finance my purchase. So now Fidentia are trying to arrange finance through the bank who are financing the development which is OTP.

A few questions that I have that I would appreciate any answers to please.

  • has anyone else suffered any similar problems?
  • has anyone ever approached OTP direct to obtain a mortgage and been successful?
  • any recommendations on other sources of finance that I could try, preferably ones that you know lend to UK citizens purchasing in Hungary?
thanks in advance,

Pete
 
Hi UKPete,

Welcome to AAM! You might want to see the discussion towards the end of this thread:
http://www.askaboutmoney.com/showthread.php?t=50985

I appreciate that you are dealing with a different developer (Kofarago Rt), but I am aware that Erste do have very specific requirements for financing new-build, and so I am not entirely surprised at what you say based on my experience (ongoing) in connection with the Autoker development.

Have you thought about trying to obtain finance from a different bank using a new broker? You could try www.connectoverseas.co.uk. Like you, I used Fidentia, but this company would have been my next port of call.
 
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Dear all, I am an administrator for Bradley Edwards & Associates (property investment and management company who deals only with foreign clients), and we now offer a new mortgage option to our clients. We also used Fidentia previously. Should you need any help, just contact me.
 
the best way to get finance is by contacting the same bank who is financing the project -
- they already registered a mortgage on the property
- they will not ask for evaluation since they have all the data available

I've dealt with fidentia and managed to secure a loan within 6 or 7 weeks, I know a guy who dealt with connectoverseas and it took him more then 2 years to get his finance approved.....

I can recoamand to you also local brokers who works with all the banks PM me if you need more details
 
This thread has got me thinking. I have a property in Budapest at present and would like to look at maybe mortgaging it over there in order not to have such a large amount of money tied up in Budapest. Has anyone any experience of dealing with the banks from a mortgage perspective? What are interest rates like over there at present and what would be the LTV typically considered?
 
Dear Pete,

I hope finally you have got the loan. OTP is the largest Hungarian bank owned by Hungarian goverment (in largest portion). Thus in handling foreigners the bank is not ranking among the competitive comemercial banks. I can imagine what have you gone through reaching an english speaking manager!

Other souces of finance
financial lease or mortgage
There are several banks subsidiary of international bank who offers these 2 types of finance.

If there are any open issue, just ask I try to help.

Szilvia
 
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