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Mortgages

Bulgarian mortgages are increasingly necessary for people buying a property in Bulgaria, but as Bulgaria is still a relatively new opportunity the numbers of available Bulgarian mortgages are still limited. That’s why Century Homes Ltd provides to our clients mortgages in Bulgaria with Bulgarian Home Loans. The Bulgarian Mortgages are available for Non Bulgarian citizens only with three Bulgarian banks. Century Homes Ltd and Bulgarian Home Loans offer you 3 options:

1 ^st Option – DSK Bank

The largest retail bank in Bulgaria, DSK are the first Bulgarian bank to actively target the UK market.

DSK mortgages are only available for purchases, there is currently no re-mortgages available.

The purchase price must be on the Notary Deed to obtain a Mortgage on the property.

Features	Comments
Max Loan to value: 70%	The maximum percentage of the purchase price that the mortgage company will lend.
Dependent on Affordability and not purely Income	The amount you can borrow will not be calculated using a simple income formulae, it will be decided due to the strength of the case.
Staged Payments available	If development is acceptable to bank then they will make staged payments on your behalf. If initial 30% takes building to roof level then stage payments are available on application for the remaining 70%.
Mortgage: Repayment only	Each month, the client makes a payment which includes the interest and an amount off the loan value until the loan is fully paid off.
Redemption Term : 5 to 20 years	The mortgage can be any period between 5 and 20 years.
Age limitation: 21 to 70 years	Applicants must be at least 21 years of age on mortgage commencement and no more than 70 years old on completion
Loan currency : Euro only	The mortgage is in euros
Loan amount : €5000 to €200,000	The minimum mortgage is €5000 euros and the maximum single mortgage is €200,000
Total credit: €300,000	After six months, a client can apply for a new mortgage on another property. The total which can be loaned is €300,000
Interest rate : 7% (variable)	The interest rate that will apply to the mortgage, this will change as European Interest rates change.
Bank Account : Mandatory	Applicants must create a bank account with the lender.
Management fee	1.3% payable when the mortgage commences
Monthly servicing	Every payment is due to charge of €0.5 (approx :35p)
Insurance : Mandatory	The property must be fully insured
Redemption : Bank base rate	The redemption charge is payable if you complete your mortgage before the end of the term. At current this rate is 5% but this is anticipated to drop to 3% for first 3 years in next few weeks.

2 ^nd Option – PIRAEUS Bank

The Piraeus Mortgage product was the first to enter the market. The application process takes approximately 12 weeks to complete a mortgage with them so do not leave things to the last minute.

Main Features:

Features	Comments
Max Loan to value: 70%	70%
Interest Rate	7% Variable
Currency Euro only	Euro only
Term 5-20 years	5-20 years
Loan amounts	25€ min – No max
Total credit limit	Unlimited if fit strict criteria
Available to	UK & Irish, individuals or Bulgarian Ltd company
Repayment method	Repayment only
Arrangement fee	1% of loan
Banks legal fees	€1,200 or €2,000 if they also do your legal work
Valuation fees	Variable
Insurance	Buildings compulsory
Redemption penalties	3% yr 1, 2% yr 2, 1% yr 3
Staged payments	Completed properties only
Bank Account	Not mandatory

3 ^rd Option – BulBank

Bulbank is one of Bulgarias largest retail and corporate commercial banks, and is part of the UniCredit Group.

Bulgarian Home Loans has just concluded negotiations with Bulbank to offer mortgages for overseas property investors. Further Details of the product will follow shortly!

Mortgages in Bulgaria with Bulgarian Home Loans.