mortgages for northern cyprus

OllieD


Joined: 23/10/2007
Posts: 14

Message Posted:
31/10/2007 16:00

Can anyone advise whether it is possible to obtain a mortgage in UK/Europe to assist with the purchasing of a property in Northern Cyprus.



We have just paid a booking deposit to secure a unit at the Thalassa Beach Resort and are paying the place an inspection visit two weeks time.



I just want to know what our options are.

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
31/10/2007 16:03

One option is to raise capital against your home in the UK (sorry Ireland). I.e. take a mortgage againt it rather that a property in TRNC



MC

davidoff


Joined: 21/04/2007
Posts: 438

Message Posted:
31/10/2007 16:10

Hi,



As far as Im aware there are no mortgages available in NC as yet- but Im sure in time these will come!



Try to raise finance in the country where you live first then possibly at a later date when they are available in NC you can change it over if its better!!



Anyway in NC and turkey rates tend to be much more expensive around the 15% mark!!!



Take care-D

ukturk



Joined: 01/09/2007
Posts: 1974

Message Posted:
31/10/2007 16:15

hi there ollied

and welcome to the forum

you cant really obtain a mortgage in the u.k/europe for a property in north cyprus because

1) northern cyprus is not reconized

2)when you get a mortgage in the u.k its only for houses you buy in the u.k, but there is a way round it what you do is if you have equity in your house that you own you can release this by saying you will be doing home decorations then you can put this towards your home in cyprus



in cyprus banks are just starting to provide mortgages for properties like hsbc

the terms on these are between 5-10 years but you have to put quite a bit down the system is quite new so i dont know fully the in's and out's the best bet is to contact the local branch in cyprus but first open an account with them you can actually do this in the u.k

another option is most developers offer a mortgage system in when you are buying their properties again you are better off contacting them directly because diffrent developers offer diffrent rates and terms

hope this helps

if you need any other info dont hesitate in posting me

ukturk

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
31/10/2007 16:59

Hi

The Little Villa Company have some properties with mortgages available

Bb

Winter



Joined: 16/09/2007
Posts: 120

Message Posted:
31/10/2007 17:08

Hi



ukturk is correct. The only way is to release equity in your own home. Just tell them you're doing home improvements !!



Winter

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
31/10/2007 17:52

You don't have to lie, many lenders will lend to you even if you tell them you are buying a holiday home abroad

martin73


Joined: 06/10/2007
Posts: 24

Message Posted:
31/10/2007 19:22

Just back from North Cyprus and have reserved in Thalassa Beach too. There is a developer finance deal at 7.9% for 5 years on the development which is better than most of the other "developer" or "Mortgage deals" available on certain developments on the island. Who knows what might happen to the mortgage market by completion in 2010. Certainly mortgages are becoming more widely available on the turkish mainland.

OllieD


Joined: 23/10/2007
Posts: 14

Message Posted:
01/11/2007 14:23

Thanks lads for the response. Hopefully in time, mortgages will become available in NC.



In the interim, do any of you have views on the following:



1. If the price of properties do increase in NC, say over the next 5 years, (as they are expected to do so) and if you are purchasing a property now for investment purposes, then when the time comes to sell, prospective purchasers are going to be limited due to the non-availability of mortgages.

2. Does anyone have any concerns in relation to the amount of hotel rooms which are expected to come on stream over the next few years in NC. Basically what I mean is that those of us who buy apartments to rent out might be over looked for fancy new hotels by the tourists, who are limited in their numbers anyways.

martin73


Joined: 06/10/2007
Posts: 24

Message Posted:
01/11/2007 16:53

Hi Ollie



1. Prices wont rise as high if mortgages dont become availably (IMHO) however alot will depend on the UK (or Ireland) economy. There will be other ways to finance and if prices just move slowly then property will still be affordable to second home owners. I think if direct flights happen then prices will rise sharply and bigger developers will enter the arena and we'll see more developer financer deals.

2. I presume you are thinking about the 5 star hotels in Bafra? Yes could be a concern but then prices are 100 sterling a night and upwards. Also a different market to an apartment. If you look at Spain hotels struggle out of season due to the amount of apartments available. I also think with the casinos these hotels will be looking at Russia, Turkey and Israel for customers and less from the tradional holiday makers from UK, Ireland and to some extent Germany.



This is just my opinion..

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
01/11/2007 19:02

I don't think prices will rise at all for a few years, there are still too many finished, unfinished and resale properties up for sale. Many people raised the funds to purchase on their UK properties and as we all know interest rates have increased quite a lot over the last 15 months. Many who have purchased for investment purposes have had their fingers burnt because prices haven't increased and they haven't been able to let their properties because of the sluggish tourist market.



Hotels are being built as if they are going out of fashion so the number of beds has increased and will continue to do so. In quite a lot of cases you can get a package holiday for the same or less than the cost of a flight.



I would not advise anyone to purchse for investment purposes, if the intention is to use the place as a holiday home then fine.