It is now possible to arrange a mortgage for your property purchase in Bulgaria. Mortgages in Bulgaria are still however a very new concept, and were only offered to foreign investors for the first time in late 2005.
Today there are 8 major banks offering mortgages to foreign investors and the number is growing. Each bank has their own criteria and which mortgage is best for you will depend on your own personnel circumstances.
Interest rates start from 6.75% Mortgages are generally on a repayment basis, however interest only mortgages are available but for maximum of 2 years at which time the mortgage will revert to a repayment mortgage
Maximum term is 25 years subject to a maximum of age of 65 at the end of the term.
Maximum loan to Value (how much loan compared to property value) is 80%
Stage payment mortgages available. This is where the lender will borrow money before. completion. This will need to be when the property reaches roof level know as Act 14 in Bulgaria
Now let’s look at a couple of stage payment mortgages. The following examples are in sterling based on today’s exchange rates. The figures may change depending on fluctuations in the exchange rate from sterling to Euros.
All figures based on a 25 year repayment mortgage at 6.75%
- 40% deposit (clients own funds)
- 20% initial mortgage drawdown at Act 14
- 40% mortgage drawdown on completion
£30,000 Studio apartment.
- 20% drawdown = £ 6,000 £41.45 per month
- 40% drawdown =£12,000 £82.91 per month
Total payment on completion £124.36 per month
£40,000 1 bed apartment
- 20% drawdown = £ 8,000 £ 55.27 per month
- 40% drawdown = £16,000 £110.55 per month
Total payable on completion £165.27 per month
£50,000 2 bed apartment
- 20% drawdown = £10,000 £ 69.09 per month
- 40% drawdown = £20,000 £138.18 per month
