Mortgages – It's all Greek (and Bulgarian) to me

So you have decided on the country and the property is perfect, but without local knowledge and English speaking advice how will you arrange finance for your all important overseas property purchase? There is a one-stop shop based in the City of London which can get you through the mortgage maze in plain English.

Piraeus Bank, London, one of the largest banks in SE Europe and the first UK based lender to make Bulgarian mortgages available to UK buyers, can offer both Greek and Bulgarian mortgages to UK and Irish residents (and expatriates who have retained UK banking facilities). Their English speaking staff in London have specialist local knowledge of both the Bulgarian and Greek property markets and after completing a simple questionnaire they will be able to tell you in minutes whether you will be able to qualify for one of their products.

The Greek mainland and its 3,000 plus islands has been a destination of choice for many UK holiday makers for decades and unlike some other Mediterranean getaways, its interest to foreigners is definitely not waning. Greece welcomes annually an impressive 16 million tourists.

Today, fans of the birthplace of democracy, architecture, sciences, drama plus the healthy and carefree Mediterranean lifestyle are putting their money where their hearts are. In Crete for example, 80% of foreign house purchasers are British and this growing trend of British buyers has pushed up house prices to become 50% higher than they were a decade ago.

However, a two bedroom, two bathroom villa with pool in Rethymno, Crete can still be had for less than €224,000 (approximately £152,000). Piraeus Bank is able to lend up to 80% of the value of a residential property in Greece with a minimum loan amount of €75,000 (approximately £51,000). They also offer an interest-only option for up to two years.

For a Bulgarian mortgage, Piraeus is able to finance up to a 75% of the value of residential property. Up to 60% is also available for land purchase (land with planning permission). There is also the option of an interest only mortgage for the first year and as for Greek mortgages, repayment terms are between 5 and 25 years.

Much has been written about the property market in Bulgaria. Buyers come from all across Europe but the majority are British and Irish, encouraged by the low property prices and the opportunity for high capital appreciation as well as the increasing availability of low cost flights. The Bank is able to offer a comprehensive service to its borrowers, being supported by the extensive network of branches in the country (67).

Irini Tzortzoglou, Head of Retail Banking, comments, “Piraeus Bank is increasingly being recognised in the UK for its specialist mortgage service and for helping buyers throughout the purchasing process. We understand that purchasing a property for most people is a life changing decision, we want to ensure that buying is easy and hassle free.” Irini also offers a few tips for buyers:

Don’t buy on impulse – take your time to compare and contrast prices and areas

Always take independent legal advice

Get approval for your mortgage loan at an early stage so you can budget correctly

Research all the costs involved before you commit yourself e.g. local council taxes, property maintenance charges

Piraeus Bank, London, provides financing options for the Greek and Bulgarian markets, whether you are buying, re-mortgaging or releasing equity, with their English speaking mortgage team, financing your property has never been so easy.

For more information, visit piraeusbank.co.uk.