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Piraeus launches interest only mortgage on Bulgarian property

21st August 2007 Print
Piraeus Bank London, the UK branch of one of Greece’s leading financial institutions, Piraeus Bank, has launched an interest only euro mortgage product on Bulgarian property exclusive to the UK and Bulgaria.

The last few years, especially since EU accession in January 2007, have seen Bulgaria become one of Europe’s most popular real estate investment locations. Over 30,000 Britons have purchased properties already with the majority of those being off-plan investments. The new interest only product for up to 10 years available from Piraeus Bank London will appeal to property buyers looking to maximise their potential financial gains.

Irini Tzortzoglou, Head of Retail Banking, comments, “The low property prices in Bulgaria have made the market extremely appealing for investors. Many are buying properties off-plan with a view to obtaining capital gain and rental income from tourism once completed. Offering a finance product which combines a 10 year interest only period and one which takes into account up to 30% of projected rental income is highly exciting for investors.”

In addition to the interest only option, the new terms available include:

up to 75% loan to value (LTV)
up to 60% for land (with planning permission)
lowest interest rates on Bulgarian mortgages in the UK at 6.5%
repayment term of 5 – 25 years
the maximum age at repayment date of 70 years
off-plan product available where the developer is financed through Piraeus Bank Bulgaria
up to 30% of projected and 40% of existing rental income taken into account

Irini Tzortzoglou comments, “Piraeus Bank is increasingly being recognised in the UK for tailoring its mortgage products to the needs of today’s buyer. The Bulgarian property market is dynamic and fast paced and we strive to ensure that out finance products develop in line with the market.”

For more information about exclusive interest only product, visit