Getting a Mortgage in Cyprus

Financing a property purchase with a Cypriot mortgage

Cypriot Mortgages for purchasing a property in Cyprus Currently covers only Greek/Southern Cyprus residential property.

If you are considering purchasing a property in Cyprus, Cypriot Mortgages are available for the majority of Nationalities for either House Purchase or re-financing for other purposes including Home Improvements.

• Type of Cypriot Mortgage: Repayment Mortgage only
• Minimum: £ 20,000 - no Maximum - and must not exceed 80% of valuation or purchase price (whichever is the lower)
• Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available).
• Non-Status loans are currently not available.
• Term: Maximum 25 years in Cyprus Pounds (15 years in all other major Currencies) - up to age 65 - possibly age 70 on a case by case basis
• Currency: Cyprus Pounds and all other Major Currencies, including Sterling, Euros, US Dollars, Swiss Francs & Yen Current Variable Interest Rate is either from approx 1.75% above LIBOR in Euros, Sterling, US Dollars, Swiss Francs or Yen OR 7.25% in Cyprus Pounds

Please note, that there are no non-status/self-certification Cypriot mortgage facilities available in Cyprus (although renting out your property is permitted), all Cyprus Mortgages need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last three month's payslips & copies of your latest P60/Employer’s Reference together with copies of your last 6 month’s Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last three years Audited Accounts & copies of both your last 12 month's Business and last 6 month’s Personal Bank Statements will be required on application.

Unfortunately in Cyprus the Lenders will NOT take into consideration any proposed Rental Income from the property for Cypriot mortgage purposes/repayments. Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance (ie: Divorce) payments together with your proposed Cypriot mortgage payments must not exceed 35% of your net monthly income.

Example: Net joint monthly income £ 2,500 times 35% of that figure is £ 875 minus existing monthly mortgage payment £ 300 – No other liabilities. This leaves a balance of £575 for a proposed Cypriot Mortgage payment.

PLEASE ENSURE THAT YOU WILL HAVE FULL TITLE TO THE CYPRUS PROPERTY ON COMPLETION AND THAT THE APPROPRIATE DOCUMENTS ARE AVAILABLE FOR THE LENDER. WITH NEW PROPERTIES, FIND OUT THE DATE THE PROPERTY IN CYPRUS WILL BE REGISTERED IN YOUR NAME(S), AS THE LENDER CANNOT LEND ON THE SECURITY OF THE PROPERTY UNTIL IT HAS BEEN REGISTERED.

WHILST ALL REASONABLE STEPS WILL BE TAKEN TO SECURE THE CYPRIOT MORTGAGE ON YOUR OVERSEAS PROPERTY AS SOON AS POSSIBLE, DELAYS MAY OCCUR DUE TO THE CYPRIOT LEGAL AND ADMINISTRATION SYSTEM. CHECK WITH THE ESTATE AGENT/LAWYER THAT YOU ARE AWARE OF THE COSTS CHARGED BY THE LEGAL & GOVERNMENT AUTHORITIES FOR PURCHASING A PROPERTY IN CYPRUS, NOTING THAT THE LENDER WILL HAVE THEIR OWN LEGAL COSTS FOR ASSIGNING THE CYPRIOT MORTGAGE (THE COST OF WHICH THEY WILL NORMALLY ADVISE WHEN THEY ISSUE THE CYPRIOT MORTGAGE OFFER). IT IS ESSENTIAL THAT YOU TAKE THE APPROPRIATE INDEPENDENT LEGAL ADVICE BEFORE SIGNING THE SALES CONTRACT OR PAYING A DEPOSIT, IF PURCHASING A PROPERTY IN CYPRUS, AS WOULD BE EXPECTED IF YOU WERE PURCHASING IN YOUR OWN COUNTRY. THE BANK WILL REQUIRE A COPY OF THIS DOCUMENT TO BE FORWARDED WITH THE RELEVANT APPLICATION FORM. HOWEVER YOU ARE ABLE TO SIGN THIS CONTRACT WITH THE CLAUSE “SUBJECT TO CYPRUS MORTGAGE FINANCE” AS THE CONTRACT, ONCE SIGNED IS LEGALLY BINDING. PLEASE BE AWARE THAT THE LAWYER/NOTARY MAY BE INCORPORATING WITHIN HIS CHARGES, COSTS FOR ASSIGNING THE CYPRIOT MORTGAGE AND YOU SHOULD ESTABLISH WITH THE LAWYER/NOTARY THE ACTUAL COST BEFORE PROCEEDING WITH A CYPRIOT MORTGAGE APPLICATION. IT IS ADVISABLE TO ARRANGE YOUR MORTGAGE IN CYPRUS BEFORE AGREEING TO PURCHASE A CYPRIOT PROPERTY.

A CYPRIOT BANK ACCOUNT WILL BE REQUIRED. ALL CYPRUS MORTGAGES HAVE TO HAVE A SUITABLE LIFE ASSURANCE POLICY ASSIGNED TO THE LENDER. CYPRUS PROPERTIES CAN BE PURCHASED EITHER INDIVIDUALLY OR IN JOINT NAMES. CYPRIOT LENDERS WILL REQUIRE YOU TO VISIT CYPRUS FOR AN INTERVIEW PRIOR THE RELEASE OF FUNDS.