Mortgage for turkey

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ecstatic

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Hi,

Looking to buy a villa for my holidays in turkey can anyone recommend some turkish mortgage providers.

Not interested in releasing equity at home.

Many thanks
 
.....And God Forbid it could be that you will end up with a mortgage on a turkey of a property?!?
 
Ecstatic, have been doing some research on this as i myself am completing a purchase in August of a villa. Despite earlier hopes it transpires at present, that it is possibly only on ebank providing international mortgages through a series of brokers in the UK. It also transpires that these are not applicable to Irish nationals as they will not at present accept credit reports from our Credit Bureau, menaing its a non runner basically. I've had to resort to releasing further equity, which works out a damn site cheaper in that if it were possible the international mortgage would charge an admin fee of anywhere between €600 and €1500, not including solicitor costs, interest rates of at least 6.9% - this would increase if you were to rent your villa by about .15%, and they were doing it on fixed term basis of 1, 3 or 5 years at a time. with variable equity rates here at around the 5% or lower mark, i think it makes more sense.
 
What about fortis they doing any foreign loans out there?

Charlistubbs what is the chances of getting an investment bank to lend the money ?
 
ecstatic said:
What about fortis they doing any foreign loans out there?

Charlistubbs what is the chances of getting an investment bank to lend the money ?
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Not sure ecstatic on that one. investment banking was an avenue i didn't go down as i hadn't come across an expample of them investing in one off villas in the past. perhaps?, thouh i expect even with the rising rates here, if you can do it from home its less hassle in the long run, and probably cheaper
 
Ecstatic,
You'll be lucky to find a Turkish bank that will provide a mortgage to a foreign national. The mortgage system was only introduced here in the past few months, slow uptake, not surprising given that interest is quoted on a per month basis, typically around 1.4-1.5% PER MONTH and given that the minimum wage here is around 325 euro per month, you can see how difficult it is to actually fund a mortgage. Borrowing money here is very expensive and the Gov has stated they have no real intention of reducing current interest rates. All because of almost double digit inflation.

I remember seeing a newspaper article that suggested a couple of banks were thinking of offering mortgages to foreigners, I think one of them was AKBank, top bank in Turkey, HSBC might have been the other one. I'll try to find the article and confirm for you.

One point to note, what Turks call "summer houses", what we would call villas and seasside homes, have dropped in price by up to 30% since last year. So while the "locals" buying are enjoying falling prices, I'm wondering if the overseas buyers are enjoying the same reductions. Caution advised

Hope this helps,
 
Thedoc said:
Ecstatic,
You'll be lucky to find a Turkish bank that will provide a mortgage to a foreign national. The mortgage system was only introduced here in the past few months, slow uptake, not surprising given that interest is quoted on a per month basis, typically around 1.4-1.5% PER MONTH and given that the minimum wage here is around 325 euro per month, you can see how difficult it is to actually fund a mortgage. Borrowing money here is very expensive and the Gov has stated they have no real intention of reducing current interest rates. All because of almost double digit inflation.

I remember seeing a newspaper article that suggested a couple of banks were thinking of offering mortgages to foreigners, I think one of them was AKBank, top bank in Turkey, HSBC might have been the other one. I'll try to find the article and confirm for you.

One point to note, what Turks call "summer houses", what we would call villas and seasside homes, have dropped in price by up to 30% since last year. So while the "locals" buying are enjoying falling prices, I'm wondering if the overseas buyers are enjoying the same reductions. Caution advised

Hope this helps,
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i don't know where u get the 30 per cent drop in prices in summer houses, is there data on this? u may be talking about porperties that may have been sold at a high premium at first.

one thing that i dont understand is why people want to buy in seaside places in turkey for investment purposes. there is much more capital appreciation in big cities where you are dealing with the local market, as well as decent rental income. of course unless you want to use the property urself.
 
Prices dropping 30%? What part of Turkey are you talking about?

where I sell, the price of property most certainly has't dropped. But then, its not over developed and wont be - thank gawd the local council has put in place boundries in certain areas so it cannot become a concrete jungle.

They now have allocated land for a graveyard for all hte foreigners living there!

Dubai developers are pumping 50 million euro into the area for 5 star hotels, golf courses etc.

It was announced that foreign nationals could obtain a mortgage there, but as its still in its infancy, I would not be inclined to do that. Too much room for errors and the interest rates are not exactly favourable either.
 
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It was announced that foreign nationals could obtain a mortgage there, but as its still in its infancy, I would not be inclined to do that. Too much room for errors and the interest rates are not exactly favourable either.[/quote]

it is very difficult in any country for foreign nationals to get mortgage, unless you are a resident. but then again it depends on your welath as well. a lot of turkish banks have been taken over by foreign banks recently so they may start easing off conditions.

agree on the interest rates, however as aforeign investor exchange rate should be more important for one, because if there is a depreciation of the local currency over and above the interest rate then you would be at an advantage given your borrowings are in the local currency. however this is not very likely in Turkey in the near future given the vast amount of foreign investment and foreign currency coming into the country.

i suspect that after the elections on 22nd July 2007 the property market will pick up. with early 2008 it is expected that mortgage applications are expected increase. interest rates are high but do not forget turkey has a population of around 70 million and around 10 per cent of this population have living standards along an average eu citizen, maybe higher.

so if you are thinking of investing in turkey, think about big cities and good locations, rental income is still good. but for this you need local knowledge of course and perhaps local partnership
 
Hi everyone,
Yes there are turkish mortgages provided for foreign nationals at the moment. The interest rates change between 1.30 - 1.40 a month. The rates are actually lower on US dollar and Euro based. Turkish banks supplies mortgages maximum to 50% of the total property price. All you need to do is go into a turkish bank branch with your pay slips and bank statements of the one year and they will provide you the mortgage in days. However before you obtain the mortgage you must have got the military chech completed before you can actually get the mortgage. So you have to make sure that this procedure has been completed. And also there is a slightly higher interest rates on the mortgages compared to European mortgages. It works out 1- 1.5 percent higher than european ones. I hope this helps

Sammy.
 
sammy09 said:
Hi everyone,
Yes there are turkish mortgages provided for foreign nationals at the moment. The interest rates change between 1.30 - 1.40 a month. The rates are actually lower on US dollar and Euro based. Turkish banks supplies mortgages maximum to 50% of the total property price. All you need to do is go into a turkish bank branch with your pay slips and bank statements of the one year and they will provide you the mortgage in days. However before you obtain the mortgage you must have got the military chech completed before you can actually get the mortgage. So you have to make sure that this procedure has been completed. And also there is a slightly higher interest rates on the mortgages compared to European mortgages. It works out 1- 1.5 percent higher than european ones. I hope this helps

Sammy.
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hi sammy, i am interested in this, can u give me any bank names,i am not sure how they can check your pay slips that are issued in ireland. thanks
 
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