With the Turkish property market still busy (and not too badly effected by the Euro crisis), investors are still interested in borrowing funds rather than just paying cash.
The most popular loans tend to be either in Euros or Sterling, but as the local currency is still in Turkish Lira, independent Currency Exchange advice should be undertaken, if borrowing in these currencies.
The cheapest loans are currently available in Euros starting from 4.90% on a Variable Rate basis, but are only available up to 70% Loan to Value with a minimum loan of € 50,000 on a Capital & Interest basis (minimum € 200,000 on an Interest only basis), noting that the minimum property value is € 70,000. These loans are limited to either UK Nationals and selected EU Nationals and are only available in the Istanbul and Turkish Riviera areas.
Alternatively, loans are available in Sterling starting from 6.15% on a Variable Rate basis, but are available up to 75% Loan to Value to UK Residents and 50% for Nationals of other countries who have an agreement with Turkey. The 75% loan has a minimum loan of € 23,000 and maximum € 150,000. All areas of Turkey are covered by both schemes, but the 75% scheme will only consider properties built and completed after January 2006.
The max term of years for all the loans do vary, but it may be possible to arrange a loan up to age 80 in Euros and age 70 in Sterling.
Full proof of income is required for all schemes and they all take into account any existing loan commitments.
Please see our loan section – click here* – for any further information and to obtain a written quote directly from our lending sources based on your current personal financial circumstances.”