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Mortgages
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Buying a property in Bulgaria is now easier than ever with the new Bulgarian mortgage, negotiated with BG Developments and the biggest Bulgarian bank.
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If you are a UK citizen and earn a combined provable income (by a pay slip or a bank statement) of at least 15,000 pounds and have a clean credit record then you would qualify for a Bulgarian mortgage. The interest rates are typically about 7% variable. The mortgage can be issued from 5 to 20 years in the amount of 5 000 to 200 000 euro.
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BG Developments can help you arrange a mortgage and get exclusive deal tailored to your needs. The bank will require proof of earnings, an employer's reference and bank statements.
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| Mortgage features |
| Max Loan to Value: 70% |
Max Loan to Value: 70% The maximum the bank will lend |
| Loan Amount: from 5 000 to 200 000 |
The minimum mortgage is 5 000 and the maximum is up to 200 000 |
| Loan Term: from 5 to 20 years |
Loan Term: from 5 to 20 years The mortgage can be from 5 to 20 years |
| Age limitation |
Applicants must be 21 years on mortgage issue and not older than 70 years on completion |
| Repayment schedule |
The repayment shall be made in equal installments |
| Loan currency: Euro |
The mortgage is in Euro |
| Management fee |
1.3% management fee is payable when the mortgage completes |
| Interest rate: 7% fixed |
The interest rate is 7% fixed for the whole loan term. |
| Bank account: Mandatory |
Applicants must have a bank account with the lender. Monthly service of the account - 0.50 euro |
| Insurance: Mandatory |
The property must be insured for Fire, Flood and Earthquake. |
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F. A. Q.
Underneath we have presented briefly their conditions for the loans they offer. The banks are:
1. Can I draw a mortgage for buying a property in Bulgaria?
Now it is possible for foreigners to buy Bulgarian properties with mortgage from Bulgaria. BG Developments is one of the pioneers in offering this service for its customers. We work with the biggest and most reliable Bulgarian banks who offer this kind of service. We are going to assist you in the whole process, explaining you each step and informing you all the time.
2. Who can apply for a credit?
Everyone can apply for mortgage in Bulgaria if he is not younger than 21 years old at the mortgage release and not older than 70 years old at its completion
3. How much can I borrow from the bank?
The mortgage can be up to 70% of the expert's property evaluation and not more than 200 000 euros.
4. Can I get additional credit except the mortgage?
Yes you can use additional funding if you serve you mortgage regularly for at least 6 months. Your total exposure to the bank can't be more than 300 000 euro.
5. What the collateral should be?
The collateral can be an apartment, a villa or house at the stage of completed rough construction and further. Blocked deposit also can be used in addition if the property evaluation is not enough.
6. Is there any grace period?
Yes you can use grace period for up to 12 months.
7. What is the interest rate for mortgages in Bulgaria?
The interest rate for mortgages varies between 6% - 9%. The mortgage for foreigners is 7% fixed.
8. For how long can I borrow the money?
You can borrow the money from 5 to 20 years.
9. Can I repay the credit earlier and do I pay any fee?
Yes you can prepay the credit earlier, but you'll be charged prepayment fee which is 5% of the principle. So if you want to prepay 10 000 euro, then you need to transfer your regular installment plus 10 000 euro plus 500 euro prepayment fee.
Note: You can do the prepayment only on your payment date.
10. What kind of documents I need to prepare?
All you need to prepare is a copy of your passport and a bank statement or any other document, certifying your incomes.
11. How long it takes to get a mortgage?
The bank will answer you within 5 working days after submitting all necessary documents and more 5 days for notary transfer and mortgage release.
12. How do I serve my credit?
You ought to open a bank account and you will serve the credit through it. You are obliged 2 days before your payment due date to ensure enough funds for paying your regular installment and monthly service fee for the account.
13. Do I need to authorize a lawyer to take care of the mortgage?
The bank requires each foreign borrower to have a legal representative in Bulgaria. Specific power of attorney should be sealed. BG Developments can suggest you 2 attorneys at law who are approved by the bank and can be your legal representatives.
14.Do I have to insure myself and the property?
The building's insurance against earthquake, flood and fire is obligatory. Life insurance is not.
15. What fees do I pay?
You have to pay 600 euro application fee, which is non refundable. The engagement fee is 1% of the credit, due for the time when the credit is allowed but not disbursed. The management fee for the 1st year is 1,3 % of the loan mount and 48 euro for each following year.
Note: The bank keeps its right to change the parameters of the credit and announces them into its tariff.
16. Are there any other fees?
The borrower is due to pay all state and local taxes and fees for the notary transfer.
If you haven't found the answer of your question, don't hesitate to contact us at info@bg-developments.co.uk
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