Cypriot Mortgages for purchasing a property in Cyprus
Currently only covers the Greek/Southern Cyprus residential property
area.
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.
Financing a property purchase with a Cypriot mortgage
- 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.