Mortgage ideas in Hungary?

M

Mjoli

Guest
Hi all, you are a godsent. I have found you while serching on the internet for good mortgage options in Hungary. I have been advised to invest there, but I don't know how affordable it is... I would like to put in max 20% own source and mortgage the rest... How is bankikn system there? Could anyone please advise? Mjoli
 
Are you interested in new-build or classical?

80% is theoretically possible, but you'd more than likely need a broker or a good relationship with a local bank manager to get more than 70% LTV. Some banks are quite open to foreigners, but due to lack of competition, charges here are quite high, e.g. to draw down a mortgage you typically have to pay 1-1.5% of the amount and each month there is usually a 'handling fee' as well as the interest repayment.

Mortgages are rarely taken out in HUF - more likely EUR or CHF as interest rates are significantly lower.
 
Hi Buda

I currently have my mortgage deal with the Erste (Circa 50% LTV). i pay 5.5% interest and 3% handling charge (Do you know of any beeter deals than this?

I am also looking to rent my apartment at circa 5 - 600 euro's per month
Classical apartment, Dist v, Nador utca, floor 1, 106 sq m with street facing balcony (Renovated but unfurnished)
Do you know of any rental agencies that are successful at marketing falts in this price bracket??
 
The major issue for a first-floor apartment on Nador utca would be noise. Does it face Nador itself or a side street?

You can probably get a better mortgage than this, as you seem to be paying 8.5% p.a. probably in a EUR mortgage. CHF mortgages are also a risk due to the currency difference, but you will find that you can access much lower rates. Do you have a Hungarian Kft or did you take out the mortgage as a private person?
 
Hi - The apartment faces the Raiffesenbank headquarters and on Nador UTCA.
My mortgage was taken out as an individual not KFT and as stated with the erste (In euros's).
 
As a private person, you should be able to get up to 75% of the value, if you wanted to increase your mortgage. CHF mortgages would cost less, but as I said, there is a currency risk.

The noise from Nador utca would be a problem for many residential tenants. Because of the central location, perhaps a business would be the most appropriate type of tenant.
 
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