Mortgages

 Having been in banking for 33 years I wrote this article.

If the title deeds are not available you will most likely need to provide the bank with a guarantee from the owner/developer costing 2% per annum on top of the interest.

What % of the house price are you needing to borrow? How long. You could get up to 80% but usually 70%.  But there are new deals coming along all the time.

Mortages are available here in Swiss Francs (lowest rate), Euros, US$, UK£ and CY£ (highest interest rate).

The Bank of Cyprus has has come out with a loan with interest only payments for 10 years, rather than the 2 years that they allowed previously. Max term up to 40 years, so after 10 years you either start repayments or pay off the loan some other way.

BOC are currently offering housing loans in Swiss Francs at 1.25% over the London Interbank Offer Rate (LIBOR), which I think is about 4.25% at the moment, so the total would be around 5.5%. The max term is 40 years or the borrowers 70th birthday, whichever comes first.  But watch out for currency movements against the base income for repayments.

Societe Generale in Cyprus have just announced a loan at 5.45% in Cyprus Pounds, but you have to apply by 31st March. This is very competitive compared to the more general rate of 6% offered by Bank of Cyprus. The rate for Sterling with BOC is between 6.35% and 6.85%.
Sterling comes out at about 6.5% whereas in the UK about 5.5%. In 2008 or may be sooner Cyprus will go over to the Euro but watch out for a potential revaluation of the CYP first. Could be 15% either way.

IFC’s (International Financial Advisers) will act as mortgage introducers and find tax efficient ways of purchase using trust and company vehicles.

Mortgages in Cyprus are now subject to UK credit checks and are assessed for affordability.

You may find it easier and cheaper to raise the money by some other means. E.g. If you have a property in the UK, you could raise money against that.

Or there are specialist lenders in the Uk who might arrange a mortgage on your Cyprus property.

http://www.uknetguide.co.uk/Finance/Mortgages/Overseas_Mortgages.html

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