Turkish Mortgages FAQ
How can I get a Turkish Mortgage?
Almost any nationality can now apply for a Turkish Mortgage,
subject to status, ability to prove affordability.
When should I apply?
The sooner the better if you have made up your mind to buy
a property
in Turkey. The Turkish mortgage administration system
can be slow and if you have already paid a deposit you will
need your mortgage relatively quickly. If you are planning
a trip to Turkey, our advice would be to obtain a mortgage
in principle offer before you leave.
How long will it take?
It usually takes around four - six weeks to obtain a full
mortgage offer from the lender from the date we obtain the
full documentation from the applicants and the seller. This
depends on you providing the documents we need in good time.
We recommend that you apply 2-3 months in advance - allow
even more time if you have not yet received your military
clearance.
How do I apply?
Shop around for the best mortgage
deals available, this can be via a bank/lender in your
home country, any of the Turkish banks, or by filling in our
application form and
we will search all available products on your behalf.
How much can I borrow?
The amount you can borrow is limited by your affordability.
As we have access to a variety of lenders, the way this is
calculated can vary from lender to lender. If you would like
us to calculate your maximum borrowing based on your affordability
then please complete our short application
form. Completing this form will allow you to budget precisely
for your purchase in Turkey
Can I included projected rental income from the property?
No - there are no lenders that take this into account when
calculating your affordability. The only time it is taken
into account is when your affordability is borderline. In
this case, the lender will approve your mortgage if your intention
is to rent it out but will decline it if you do not intend
to rent it out. UK rental income is taken into account when
calculating affordability.
Bank valuation versus purchase price.
If you are applying for and relying upon a maximum of 75%
lending, it is important to realise that most lenders will
lend you 75% of whichever is lower. This means that if the
bank’s surveyor estimates the value of the property
to be less than what you are paying for it, you will have
a short fall in funds. If you are relying on maximum lending
then you should be prepared for this risk.
Occassionally we get get a higher maximum and for selected
properties we are able to offer 100%
mortgages. You cannot add any of the purchase fees to
the loan amount.
Can I buy with another person and combine our incomes?
If the individual is your "legal" partner (i.e.
Wife, Husband, Girlfriend, Boyfriend etc) and you live at
the same address, then yes. If you are siblings or friends
then no. You will be considered to be seperate applicants
for the loan and must each justify that you can independently
support the loan and your existing commitments.
What are the interest rates?
Mortgage interest rates vary
from bank to bank and each lender has several different products.
Our close ties with Turkey ensure we have access to a range
of lenders and a range of products and are not tied to any
particular bank. This enables us to offer you the best interest
rates and terms for Turkish mortgages.
What do I need for proof of income?
Every lender in Turkey requires income to be officially documented.
This is done by providing the following:
If you are employed:
Last three payslips;
Latest P60;
Occassionally a reference from employer.
If you are self-employed, providing two of the following:
Last two years accounts;
Last two years tax returns;
Letter from your account confirming net profits for two years.
What if I am retired?
Retired applicants do qualify - simply providing a letter
proving your income is usually sufficient.
What other documents do I need to provide?
In all cases the following additional documents will be requested
Proof of ID
Last three bank statements proving income; and sometimes
Your up to date credit report (obtained from www.creditexpert.co.uk)
Sometimes - your proof of deposit (a bank statement showing
the funds to be used for the deposit or equivalent).
How do I complete a purchase with a mortgage?
You will usually need to visit Turkey for completion matters.
However if you are unable to do so we can provide you with
advice on how to appoint a power of attorney in Turkey. The
Power of Attorney can complete with your explicit instructions
and drawdown the mortgage to pay to the seller.
Can I book or reserve an interest rate to avoid any
increases before the application is being made?
With some products, yes you can. Rates are revised monthly
and the deadline for rates changes regularly. Please ask your
advisor when the deadline for the illustrated rate is. Our
advice is to apply early and provide your documentation as
soon as possible. We can make a full application online so
scanned documentation will speed up your application and ensure
we can book the rate.
What is military clearance and why do I have to
have it?
Non Turkish nationals purchasing a property in Turkey must
apply for military clearance. This is permission from the
Turkish department of defence to allow you to purchase the
property. This is carried out because some property is protected
by law in accordance with military and internal security procedures.
The application is usually done by your seller or solicitor.
If your solicitor is instructed to carry this out, there is
usually a fee for this.
Currency fluctuations
You should note that some mortgages are available in Euros
only. If you have agreed your price in Sterling you should
be aware that currency fluctuations can cause the final Sterling
equivalent of your loan lower than originally applied for.
Likewise it can be more. You should be aware that if there
is a shortfall due to this, you will need to make this shortfall
up from your own funds. The best way to avoid such a scenario
is to either:
Agree the purchase in Euros; OR
Having agreed the purchase price in Sterling, fix the final
balance in Euros with your seller.
How do I repay the mortgage each month?
You can do this by standing order from your bank account in
the UK to the lender in Turkey. Alternatively (and in some
cases compulsory), you can set up an account with a currency
exchange company. There is no charge for this. The exchange
company will debit the Sterling equivelant each month and
convert into the currency before sending it to Turkey. Unlike
your UK Bank, Moneycorp
currency exchange, who come highly recommended, will not
charge you a fee for doing this.
What are the rules regarding Nationality?
We can usually secure a mortgage for any national in the
world, including the Americas, Australasia, UAE, Qatar to
name a few. Please contact us
for advice on your specific needs.
What Insurance will I need?
You will of course need buildings insurance. You will also
need a special type of Earthquake insurance called DASK. In
some cases you will also need life assurance (depending on
the lender). We arrange property
insurance all on your behalf as part of the mortgage service.
Can I remortgage / release equity?
Turkish Property & Mortgages can help you remortgage
with an alternative provider at a much lower rate, currently
5.3%. Equity Release. If you purchased your property after
1999 (but not within the last 12 months), you can apply for
equity release. Equity release is limited to 60% of the property's
valuation and is available to Employed applicants only.
How long will the mortgage offer be valid for?
Depending on the lender - 4 weeks to 4 months.
I complete in 12 months, can I get a mortgage now?
Not usually, no. This is technically an off plan mortgage
although some developers do offer their own mortgage plans
that can make it possible by guaranteeing a mortgage once
the property is complete.
How do I apply for a Turkish Mortgage?
You can either shop around, approaching a number of banks
and lenders, or you can fill in our short online application
form and we will contact you to discuss the various options
available to you.
Once we have spoken to you, and if you decide to go ahead,
you would need to make a full application that we can then
submit to various lenders and negotiate the best mortgage
deal for you.
Turkish Mortgages & Property does charge an arrangement
fee for arranging the mortgage although our advice and recommendation
service or apply for a Turkish Mortgage
in principle offer is provided free of charge. Our fees
vary from product to product based on the commission we are
paid by the lender.
We believe that our fee is the most reasonable currently
available and provides excellent value for money. We also
provide a refund if we are not able to obtain the mortgage
in question. If you can find a genuine like for like quotation
that is better than ours, please let us know and we will be
happy to match it.
If you have any enquiries regarding Turkish Mortgages, please
do contact us using the form below.
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