Posted on 24 July 2009
As the news continues to tell us that getting a mortgage in the UK is more of an achievement than an occurrence, apparently the situation is a little better in Turkey, though the “banks are being cautious” according to Julian Walker of Turkey property specialist Spot Blue.
Pointing out that mortgages can only be obtained for completed properties in Turkey, and those that have all the property documents in place, Julian said that the situation is much the same as it was before the credit crunch. Though he did stress that the decrease in sales volume, and the predominance of lifestyle buyers making cash-transactions maybe clouding the true image.
There is a Turkey mortgage application form that potential applicants can fill out in advance of a properties completion, in order that they can be “approved in principal” for finance on a property, but the banks will only lend against properties they can value Walker said.
The likely reason why Turkey is still so favourable towards mortgages is because they had a major economic crash in 2001, which brought about many of the reforms in the banking sector that many countries are now falling over themselves to implement. This has led to Turkey’s banking sector weathering the current storm much better than most.