How we can help you to finance your overseas home by using the Bulgarian property as security?

If you require finance to purchase your Bulgarian property, then our Financial Services - Licensed Credit Broker (who have had over 10 years experience in the Bulgarian property market) could assist. Using the Bulgarian property as security a Repayment mortgage in Bulgaria could be raised, depending on individual requirements.

Based on the valutation or purchase price, whichever is the lower, of the Bulgarian residential property, UK & Irish Nationals (and non-UK Nationals on a case by case basis) can borrow up to 70% for purchases and remortgages for Home Improvements. Bulgarian mortgages for other purposes may be considered - contact us for further information.

• Please note, that if the Bulgarian property is an apartment being built, funds are not available until the completion and the apartment has been legally registered in your name. The same will also apply for a new house/villa, but in this case, if the land is already purchased and registered in the name of a Bulgarian Company (with you as legal owner of that Bulgarian Company), stage payments may then be available on a drawdown basis to construct the property - full details on request.

For all schemes there is a minimum loan of 5 000 EUR, no maximum, available in Euros only. The maximum term of the loan is 25 years - available up to age 70. Current interest rate as at 7th February 2008 is approx 6.95% in Euro.

Bulgarian mortgages -  top 3 bank offers:

Raiffeisen Bank Mortgage Offer:

Bulgarian Mortgage Details
Currency	EURO / BGN
Interest Rates	6.65% EUR, 6.95% BGN, fixed for 1st year, then Cost of Funds plus margin, COF is 4% (margins are +3.15% EUR or +2.45% BGN)
Repayment method	Repayment with 12 months grace period only
Term	3-25 years
Ages	23 - 63.
Loan To Value	80% ACT 16, 70% Roof level, 60% regulated land, OF VALUATION NOT PURCHASE PRICE
Loan Amounts	€5k-no Max
Multiple Properties	Yes if with affordability
Nationalities	All foreigners, prefer UK
Remortgage available	No
Notary Deed Price	Full
Calculations of affordability	60% Net Income to Debt ratio, including BG mortgage. Income - debt should leave E500 per adult and E250 per child
Documents needed	Self employed, letter from proper accountant, Employed last P60 and last 3 months payslips, Equifax only for now, and UK promissory note (access to UK assets) signed by client + 3 months bank statements
Ltd Companies	Yes, lend to individual with Ltd co as a co-debtor
Redemption penalties	4% for 3 years then 2% for term
Staged Payments	Yes in a couple of ways, need to release within 12 months for staged, 3 months for completed
Bank Account	Yes with 3 months payments credited, + 3 monthly service fees = 1 x 3, + annual management fees of 0.25%
Online Banking	Yes in English
Notes	Can do multiple properties on single application form. Can pre agree lending amount and supply certificate for 20 Euros. Will also do pre legal’s and pre vals for developments
Insurance
Number of applicants	max 4, wives/ husbands should be on applications form but do not need to prove income a
Pre Approval &Valuation Fee	£360
Completion Fee	1.5%% of loan amount
Other Fees	0.5% per annum for unreleased amounts, 0.25% annual fee
BHL Engagement Fee	£200
BHL Application Fee	£400
BHL Completion Fee	0.5% of loan amount (minimum £200)
POA + Apostille	£80 + VAT
Annual BHL Management Fee	£50 + VAT

The processing time for this product is approx 12 weeks once all the required documentation is received by the applicant and the vendor.

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DSK Bank Mortgage Offer:

Bulgarian Mortgage Details
Currency	EURO, USD
Interest Rates	7% bank variable
Repayment method	Repayment only (can appy for 1 year at interest only)
Term	5-25 years if credit report provided 3-20 years if credit report not provided
Ages	21-65
Loan To Value	80% if client provides credit report 70% if no credit report provided.
Loan Amounts	€5k-200k
Multiple Properties	after 3 months of 1st mortgage if credit report suppliedafter 6 months of 1st mortgage if credit report not supplied
Nationalities	Bulgarian and foreign citizens, living and working outside of Bulgaria.
Remortgage available	No
Notary Deed Price	At least loan amount
Calculations of affordability	Minimum provable income of €30,000 gross 50% of net monthly income (or family income) must be more than all monthly credit commitments (loans, mortgage, credit cards) plus the proposed Bulgarian monthly mortgage payment.In cases where no monthly commitments are identified then the monthly Bulgarian mortgage payments must not be more than 35% of the net monthly income or family income of the loan applicant.NO ADVERSE CREDIT IS ALLOWED
Documents needed	1) Credit report from either Equifax or Experian or certified, translated reference from your main bank stating income & commitments; 2) Last 6 months bank statements (from the bank into which your income is received), these must be certified by your bank; 3) Certified / translated document from your employer confirming your role, income and start date; 4) Last 6 months pay slips (certified by employer) or this information should be included in letter from employer (3); 5) For self employed applicants, tax return for the previous 2 years (certified by issuing authority); 6) Loan applicants who provide a credit report do not need to provide a reference from their service bank.All documents certifying income and credit liabilities must be originals and accompanied by a translated version produced by a sworn translator.BHL charge €15 per page for translation
Ltd Companies	No
Redemption penalties	5% over the early repaid sum for the first three years and 3% over the early repaid sum for the rest of the mortgage period. The fee is imposed irrespective of the early repaid amount and is to be drawn from the current account at the date of the early repayment.
Staged Payments	Yes from ACT 14 onwards (rough construction)
Bank Account	Yes with 3 months payments credited
Online Banking	No
Notes	All Payments have to made into a BG Bank Account
Insurance	Buildings and Contents mandatory Life insurance mandatory
Number of applicants	max 4
Valuation Fee	€500, they instruct using banks own evaluators €600 for stage payment app
Completion Fee	1.30%
Other Fees	€20 State Mortgage Registration Fee
BHL Engagment Fee	£200
BHL Application Fee	£400
BHL Completion Fee	0.5% of loan amount (minimum £200)
POA + Apostille	£80 + VAT
Annual Management Fee	£50 + VAT

• To use the stage payment facility the developer must transfer the Notary Deed at roof level.
• All Payments must be paid into a Bulgarian Bank Account.
• The processing time for this product is 12 weeks once all the required documentation is received by the applicant and the vendor

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Bulbank Mortgage Offer:

Currency	Euro & BGN & USD
Interest Rates	8.5%
Repayment method	Repayment
Term	0-20 years  (Up to 25 yrs for BG citizens working abroad)
Ages	60 (f) 65 (m)
Loan To Value	65%
Loan Amounts	no min no max
Mulitple Properties	unlimited if affordable
Nationalities	All Foreigners
Remortgage available	No
Notary Deed Price	At least loan amount
Calculations of affordability	BG mortgage payment to be no more than 20% of net income
Documents needed	ID, payslips, employers reference, bank reference, 6 months bank statements, prelim in contracts, marriage certificate, passports
Ltd Companies
Redemption penalties	3%
Staged Payments	ACT 15 only
Bank Account	Yes with 6 months payments credited
Online Banking	No
Notes
Insurance	Buildings & Contents Included Life Insurance is Mandatory
Number of applicants
Penalty Fees
Valuation Fee	£210
Completion Fee	1.5% + 0.25% per year
Other Fees
BHL Engagment Fee	£200
BHL Application Fee	£400
BHL Completion Fee	0.5% of loan amount (minimum £200)
POA + Apostille	£80 + VAT
Annual Management Fee	TBC

• The processing time for this product is 12 weeks once all the required documentation is received by the applicant and the vendor
• The applicant will need to have 6 months of payments locked in a BulBank holding account

The details displayed above are correct to the best of our knowledge. We do not accept liability if these details are subsequently proved incorrect. These product details were updated on 9 Spetember 2007.

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Bulgarian mortgages - calculator