Posted on 09 February 2008
Turkish property specialist Spot Blue arranges its first Turkish mortgage for off-plan property
Spot Blue has arranged its first mortgage on a Turkish property for a UK buyer – showing the agent is at the cutting edge of securing Turkish finance for clients. The loan, for software consultant Steve Hardy, 43, is set to widen the doors of the Turkish property market because even more Brits can now buy into the country’s beautiful coastlines, its sunny weather, friendly people and great value property.
Turkey’s new mortgage law for foreign buyers is passing its final stages through parliament but property consultant Julian Walker from Spot Blue says it can arrange finance in Turkey for British investors right now.
“Stephen secured his £70,900 Turkish property with us at a recent overseas property show, after which he paid a £2,000 refundable deposit to his lawyer’s escrow account,” says Walker.
“He paid the first payment of 30 per cent [£20,000] out of his own savings and Spot Blue arranged the final payment of 70 per cent through one of the largest Turkish banks. Stephen is one of the first buyers we know of to secure finance for off-plan property in Turkey.”
However, Walker warns that some agents are promising their clients mortgages of 100 per cent. “This is not the case. They’re promising a 100 per cent loan and then undervaluing the property – it’s a load of waffle in my opinion. You can’t get a loan-to-value mortgage of 100 per cent, it’s more like 70 per cent.”
Investor Steve Hardy, whose two-bedroom duplex apartment will be completed in December this year, says: “I was told by everyone that it would be really difficult to secure a mortgage in Turkey but Spot Blue did everything for me – they made the whole process of buying so easy. I’ve secured a variable rate mortgage and I’m expecting to pay around 8 per cent from December.”
Mortgage rates are higher if buyers intend to rent out their property.
Spot Blue can set up a range of finance packages for British buyers in Turkey through its contacts among brokers and banks in Turkey. The founders of Spot Blue have a background in City banks and have worked under the strict government-endorsed rules of the Financial Services Authority.
Walker says: “Spot Blue use these guiding principles throughout our sales process – we don’t mis-sell. We are also members of the Association of International Property Professionals and the NAEA.”