North Cyprus > Property > Mortgages
Applying for a mortgage in North Cyprus is similar just like in the UK. In that case your budget will be your available balance and mortgages available according to your balance. Your initial price research can be North Cyprus Estate Agents’ websites that list their property portfolio online. According to prices and your needs you can easily plan your budget. Also many Estate Agents in North Cyprus offer their mortgage plans online. One more thing you have to know that mortgages in North of Cyprus are not as freely available as UK mortgages, thus it is worth the sorrow to do work before you start to seek your dream house in a paradise island.
If you are looking to buy your dream home in North Cyprus and you’d like to learn more about the financial options you have, please read on.
Mortgages in North Cyprus
Many overseas property buyers of North Cyprus that are lack of budget wish to take out a mortgage to assist their available balance. Due to the political situation in Cyprus foreign mortgages will not be available for financing your property. Only foreign mortgage resources are UK lenderers for North Cyprus but these lenders will look for their main security on your UK property. For many prospective purchasers, this is not attractive as it places an element of risk on their family home in the UK. Best available mortgage option for your dream home will be local North Cyprus banks.
Mortgages From North Cyprus (TRNC) Banks
Today, it is not so easy to get a mortgage from a UK or any other foreign bank for a property located in Northern Cyprus due to the political situation. Some Turkish banks do offer mortgages on TRNC property to their customers already resident in the TRNC and look for a security on property that is located in North Cyprus even that can be your dream home. So if you are living in North Cyprus, it worths to ask your TRNC bank for details of their deals. Typically local bank mortgages are available for up to 66% of the property value, at interest rates of up to 7%, a much shorter period of time than UK mortgages, for a period of five years.
Equity Release and Re-Mortgage
For non-residents of North Cyprus its so hard to get a mortgage from local banks aswell. So potential purchasers that are lack of available balance will look for mortgage lenderers in the UK. For some, remortgaging in the UK have some advatages and disadvantages. Re-mortgaging in the UK allows them to take advantage of lower interest rates that they can save up to £1,000 a year for each 1 percentage point reduction in their interest rate. So many buyers choose to release equity from their existing UK property to fund their property purchase in North Cyprus, and take advantage of UK mortgage rate deals. The steady rises in UK property prices over the last ten years has enabled many to re-mortgage their UK house and release enough equity to buy their North Cyprus property outright. But these lenderers will secure your UK property and not your North Cyprus property.
Buying Off-Plan and Instalment Payments
Due to North Cyprus has not a real active resale market, nearly all new developments are offered as under construction to purchasers. This means that those looking to buy a property in Northern Cyprus generally choose to buy off plan and have complete control over the design and finish of their dream home. Buying off plan offers the purchaser many advantages, not least of which are two significant financial benefits; firstly, if you decide to buy today you secure your property at today’s prices and interest free but can not move into it until it’s completed in 1 - 2 years, at that point its market value may well have increased significantly. This gives you an immediate return on your investment in North Cyprus. Second, payments are staggered in instalments through the construction period, and you do not need to find the full costs all at once.
Direct Mortgages from Developers in North Cyprus
Many developers in North Cyprus knows the finance market that is lack of mortgages. So they started to offer their own mortgage plans to purchasers who are looking for buying their dream home in North Cyprus. They are offering fixed rates to their clients. Interest rates can be %5 to %8 within 15-20 years and %70 of the property value.