Mortgages for buying property in Turkey

There are over 275,000 people from the UK already overseas property owners and this figure is set to climb a lot higher in the coming years according to the Office of National Statistics. Therefore, it is imperative to make the right choice when considering how to finance your overseas property purchase. In addition to absorbing the information set out in our Buyers Guide it is most important to study the mortgage facilities available to you as an overseas buyer.

Mortgages for Turkish Property

If you require finance to purchase your Turkey property, then our partners who are Licensed Credit Broker with over 20 years experience in the overseas property finance market could assist.

Using the Turkish property as security a Repayment mortgage could be raised, depending on individual requirements based on the valuation or purchase price, whichever is the lower, of the Turkish residential property.

CURRENTLY WE CAN ONLY LEND 80% IN THE FOLLOWING AREA'S:

TURKISH RIVIERA & ISTANBUL Turkish Riviera (includes):
Alanya -
Antalya -
Bodrum -
Datca -
Didim -
Fethiye -
Kalkan -
Kusadasi -
Mahmutlar -
Mugla
** All other areas can be considered up to a maximum loan to value of 60% - 70% on a case by case basis ** 75% LTV on residential property - in the Turkish Riviera (see above) or Istanbul only.

Minimum loan: €40,000 - making minimum Purchase Price of €50,000.
Maximum loan: €200,000 - making maximum Purchase Price of €250,000.
Fixed Interest Rates: only over: 1, 3 & 5 YEARS. Euros Only .
Euros: 1 year - 6.10% - 3 years & 5 years fixed available. Fixed Interest Rates only - no variable rates available.

If the property is to be rented out Interest rate increases by 0.60% for the duration of the loan.
Repayment terms ONLY (no Interest only available) of 5 to 20 years
Minimum age: 24 upon application to Maximum age 75 upon completion.

1st Time Buyers? YES.
Staged payment funding available? No, mortgage funds will not be released until the construction of the Turkish property is fully completed and legal registration of the Turkish property has taken place.
Re-Mortgages? No, we cannot assist if the Turkish residential property already has a mortgage on it. Equity Release Mortgage (from existing Turkish Residential property)? Yes, but ONLY if the property is 'mortgage-free'.
Affordability: 45% of NET monthly income - less existing monthly commitments (if clients also have existing 'buy to let' properties, then the rental income received from these, must cover a minimum of 120% of the monthly mortgage amount due). Incomes NOT considered: Incapacity or Disability benefits, Maintenance/Alimony or existing Rental Income. Incomes considered: All employed salary & self-employed incomes only.
Eligibility: Only EU passport holders & UK or IRISH residents ONLY & applicants with 'clean credit history' - no existing Defaults or CCJ's.
Maximum number of applicants: 2


Written Quotations Available On Request

Repayment mortgage of approx € 80,000 over a period of 20 years at an initial Fixed interest rate of approx 6.10% Fixed for 1 year = approx € 584.00 capital & interest per month = a total approximate amount payable over a term of € 143,040 including capital, interest, arrangement and survey fees.

The income criteria is variable
Bank Reference and Employers or Accountants reference if self-employed
Existing borrowing in the UK and Overseas will be taken into account

ALL ENQUIRIES WILL BE DEALT WITH ON A CASE BY CASE BASIS & ARE SUBJECT TO SATISFACTORY CREDIT STATUS & VALUATION

Please note, that as the loan is secured on the overseas property, it is not covered by the UK Consumer Credit Act or the Financial Services Authority.


Overseas Mortgage Providers

We feature a select few when it comes to reccommending mortgage facilitaors from the UK. This can be an easier way to arrange your finance or mortgage requirements before you begin your search. Listed below are some of the advantages to using some of the companies we reccommend.

More than 200 residential overseas/foreign mortgage products available in over 30 countries worldwide including Bulgaria and Turkey
Over 10 years of trading and 20+ staff experienced in conducting business with overseas and foreign lenders
Fully independent with more overseas/foreign lenders and more choice
Competitive and exclusive overseas/foreign mortgage terms
In some countries, no final arrangement fee charged by us for organising the overseas/foreign mortgage
At no cost, can internally pre-qualify your application financially, thereby saving any wasted inspection flights
Can save you time and costs (ie: phone, fax and postage) in both exploring and finding a possible lender
In-house processing and dedicated underwriting team for each country ? who are fully aware of what documentation the lender requires, their lending criteria and how to present the application, which ensures a faster mortgage offer
The use of our extensive database of other relevant professionals such as lawyers, surveyors, currency exchange and offshore company formation experts .

Finance For Property In Turkey

It is now possible for foreigners to get a mortgage in Turkey.
We are in the Kusadasi area are now able to help you arrange a mortgage with local banks.


Our agent in Kusadasi is in the process of setting up arrangements with local bank/s.
Please remember that if you intend buying in Turkey using a Turkish mortgage that documentation will be required whilst you are in Turkey.
Please ask us when planning your viewing trip what documentation you will need to bring. Kusadasi Property Sales

Typical Mortgage Terms for a Turkey Mortgage (these vary from area to area and each bank has their own rates and lending criteria.)

Loan to value Maximum 65% of the appraisal value (not always equal to the sales price)
Debt to income Maximum net salary to spend to installment for total loan position 50%
Valuation of income Only salary income transferred to a bank account, average profit of the last 2 years, pension income
Maximum amount No maximum
Minimum amount € 30.000 euro
Nationalities All countries that have a reciprocal agreement with Turkey.(Based on these agreements foreigners of the following countries are eligible. UK, Germany, Australia, Austria, Belgium, France, Holland, Ireland, Spain, Italy, Canada, Luxemburg, Norway, Greece as well as some African and South American states.)
Maturity 5,10,15 and 20 years

Loan in YTL Yes
Loan in euro Yes
Loan in Dollars Yes
Loan in British pound Yes
Interest types Fixed
Early repayment Possible ( penalty fee may apply)
Property valuation Done by Bank or appointed appraisal by Bank, pre-valuation paid by Bank
Age of application 25 -70 years
Maximum age at end of maturity 70 years
DASK: nature disaster insurance, House insurance; To arrange via Bank,
Life insurance No obligation
Off plan mortgage Yes, with full bank guarantee from constructor for the total loan amount
Monthly installment payments Automatic payment from a Bank account

Further information on purchasing a Turkish property

Please note, that non-status/self-certification mortgage facilities are not available through the lenders. All applications need to be supported by a minimum requirement of proof of income. If employed, copies of your last three month's pay slips & your latest P60 and an Employer’s Reference together with copies of your last three month’s Personal Bank Statements will be required or alternatively if you are self-employed or Director of a Limited Company with a shareholding of 20% or more copies of your last three years Audited Accounts plus copies of Personal Tax Returns for the last 2 year & copies of your last 3 Personal Bank Statements will be required on application.

Please note that it will also be necessary to obtain a copy of your credit file via Equifax or Experian.

The lender will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.

EURO TURKISH MORTGAGE SCHEME ONLY: 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 and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 60% of your net monthly income.
Example: Net joint monthly income £2,500 times 60% of that figure is £1,500 minus existing monthly mortgage payment £700 – No other liabilities. This leaves a balance of £800 for a proposed Turkish Mortgage payment.

STERLING TURKISH MORTGAGE SCHEME ONLY: 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 and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 33% of your net monthly income after liabilities have been deducted.
Example: Net joint monthly income £2,500 minus existing monthly mortgage payment £700 and no other liabilities = £1,800 x 33% = £594 available for a proposed Turkish Mortgage payment.

STERLING, EURO & US DOLLAR TURKISH MORTGAGE SCHEME ONLY: 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 and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 40% of your net monthly income.
Example: Net joint monthly income £2,500 times 60% of that figure is £1,000 minus existing monthly mortgage payment £400 – No other liabilities. This leaves a balance of £600 for a proposed Turkish Mortgage payment.
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PLEASE MAKE SURE THAT THERE IS EITHER A SEMI OR FULL RELATIONSHIP BETWEEN YOUR CITIZENSHIP COUNTRY AND TURKEY. IF THERE IS NOT A RECIPROCAL ARRANGEMENT, IT IS NOT POSSIBLE TO PURCHASE PROPERTY IN TURKEY.

PLEASE NOTE, THAT YOU WILL NEED TO OBTAIN A TAX ID NUMBER (VERGI KIMLIK NUMARASI) WHICH IS REQUIRED FOR OPENING A BANK ACCOUNT, CONTRACTING GOODS AND SERVICES (TELEPHONE, ELECTRICITY ETC) AND DEALING WITH LOCAL TAX AUTHORITIES. YOUR LAWYER WILL ADVISE YOU ON OBTAINING ONE.

IT IS STRONGLY RECOMMENDED THAT YOU TAKE THE APPROPRIATE INDEPENDENT LEGAL ADVICE WHEN PURCHASING A PROPERTY IN TURKEY BEFORE SIGNING THE SALES CONTRACT OR PAYING A DEPOSIT.

PLEASE ENSURE THAT YOU WILL HAVE FULL TITLE TO THE TURKISH PROPERTY ON COMPLETION AND THAT THE APPROPRIATE DOCUMENTS ARE AVAILABLE FOR THE LENDER.

TURKISH PROPERTIES CAN BE PURCHASED EITHER INDIVIDUALLY OR IN JOINT NAMES – MAX 2 APPLICANTS.

ALL PROPERTIES IN TURKEY (IN MEANS OF RESIDENTIAL BUILDING) MUST HOLD A “USE PERMISSION CERTIFICATE” IN ORDER TO HAVE WATER, ELECTRICITY AND SEWAGE.

PLEASE MAKE SURE THAT THE SIZE AND THE LOCATION OF THE PROPERTY IN TURKEY IS IN COMPLIANCE WITH TURKISH LAW. THE PROPERTIES LOCATED IN FORBIDDEN MILITARY ZONES CANNOT BE REGISTERED INTO A FOREIGNER’S NAME. PURCHASE OF TURKISH PROPERTIES LARGER THAN 30 ACRES BY A FOREIGNER ARE SUBJECT TO THE APPROVAL OF THE COUNCIL OF MINISTERS.

THE LENDER SHALL OBTAIN THE SECURITY FOR THE TURKISH MORTGAGE BEFORE LAND REGISTRY OFFICER AND ALL PARTIES TO THE SALES TRANSACTION, INCLUDING THE VENDOR, PURCHASER (AND/ OR THE ACTUAL OWNER IN CASE CITED IN THE ABOVE PARAGRAPH) AND/OR A REPRESENTATIVES OF THE PARTIES NEED TO BE PRESENT. HOWEVER A POWER OF ATTORNEY MAY BE USED TO SIGN ON YOUR BEHALF FOR THE TURKISH MORTGAGE AND LAND DEEDS.

UNLESS YOU UNDERSTAND TURKISH WELL ENOUGH TO COMMUNICATE WITH THE LAND REGISTRY OFFICER OR NOTARY (IN CASE OF EXECUTING SALES CONTRACT), THE OFFICERS OR THE NOTARY IS OBLIGED TO CALL UPON THE SERVICES OF A QUALIFIED TRANSLATOR, BECAUSE THE LAW STATES THAT YOU MUST UNDERSTAND WHAT YOU ARE PURCHASING IN TURKEY. THE COST OF THE TRANSLATION SERVICES WILL BE PAID BY YOU. ALTERNATIVELY, YOU MAY WISH TO GRANT A POWER OF ATTORNEY TO A REPRESENTATIVE OF YOUR CHOOSING, WHO IS FULLY CONVERSANT IN THE TURKISH LANGUAGE.

CHECK WITH THE ESTATE AGENT/LAWYER THAT YOU ARE AWARE OF THE COSTS CHARGED BY THE AUTHORITIES FOR PURCHASING A TURKISH PROPERTY.

MANDATORY EARTHQUAKE INSURANCE (DASK) WILL BE REQUIRED TO COVER THE TURKISH PROPERTY IF THE PROPERTY IS A BUILDING. LIFE INSURANCE IS NOT MANDATORY WITH ALL LENDERS, BUT IS ADVISORY WHERE NOT A CONDITION OF THE TURKISH MORTGAGE.

WHILST ALL REASONABLE STEPS WILL BE TAKEN TO SECURE THE MORTGAGE ON YOUR PROPERTY IN TURKEY AS SOON AS POSSIBLE, DELAYS MAY OCCUR DUE TO THE TURKISH LEGAL AND ADMINISTRATION SYSTEM.

PLEASE NOTE, THAT THE TURKISH LENDERS WILL NOT ADVANCE FUNDS TO PURCHASE OR RENOVATE PROPERTIES IN TURKEY THAT ARE CURRENTLY UNINHABITABLE.

IT IS ADVISABLE TO ARRANGE YOUR TURKISH MORTGAGE BEFORE AGREEING TO PURCHASE A PROPERTY IN TURKEY.

About Mortgages in Turkey

Turkish Mortgages Rates for purchasing a property in Turkey (including Turkish residential property) are from approx 5.90% in Euros. Please note, that if the property is being built, funds are not available until completion and the property has been legally registered in your name.
If you are considering purchasing a property in Turkey, Turkish Mortgages are available for the majority of Nationals for either House Purchase or re-financing for Home Improvements. Mortgages for other purposes may also be considered.
We are able to obtain pre-approval of mortgages for customers, so whether you are at the very early stages of thinking about purchasing a property in Turkey, already found your new property, or currently have a mortgage on your Turkish home and wish to save money, we maybe able to help.

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Can I Get a Mortgage in Turkey?
I am a foreign national – can I get a mortgage in Turkey?
Only if you are UK , Irish, Belgium, or Dutch resident.
How much can I borrow?
Minimum: €40,000; Maximum: €200,000 (larger amounts may be considered on a case-by case basis), but must not exceed 75% of the valuation or purchase price (whichever is the lower) in the Turkish Riviera* & Istanbul only. Mortgages in other parts of Turkey are dealt with on a case-by-case basis.
What type of mortgage is available and what is the term?
Repayment basis only for a maximum of 20 years - up to age 75. Maximun term is 15 years if loan is below €150,000. Minimum age 24 upon application.
What proof of income do I require?
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.
What is the current rate of interest?
From approx 5.90% fixed for 1 year in Euros or approx 6.90% Fixed for 1 year in Sterling. Fixed Rate loans over 3 and 5 years, also available.
Please note, that if the property is Rented, the Interest Rate is increased by 0.60% for all schemes throughout the mortgage term
Do I need Insurance on the property?
Yes, it will be a condition that your building insurance is taken with the mortgage lender
Can I borrow in Euros?
Yes you can borrow funds in Euros.
* Turkish Riviera includes: Alanya, Antalya, Bodrum, Datca, Didim, Fethiye, Kusadasi, Mugia & Mahmutiar.

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How to Apply
In order to obtain a decision in principle, please complete the online application form
Once approval has been given, we will then arrange for the lenders completed application to be send to you for signing and returning with the necessary documents:
Certified copies of passportsProof of incomeLast 6 months personal bank statementsCurrent loan or outstanding credit statementsLatest Mortgage statement (home loan)Business accounts and last 6 months business bank statements, if self employedTHIS IS THE MIMIMUM REQUIREMENTS AND THE LENDER MAY ASK FOR FURTHER DOCUMENTATION TO BE PRODUCED BEFORE ACCEPTING A MORTGAGE LOAN FOR OFFER.

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Mortgage Process
The mortgage process in Turkey, is very similar to the majority of many other countries but can be at times slow, due to the Turkish legal and administration system.
You should be aware that property purchased in Turkey, especially raising of Turkish finance, can be more complicated and time consuming, therefore we would recommend that you start the mortgage process as early as possible to avoid such delays and make the buying process as smooth as possible.
Obtaining an acceptance for a mortgage, will give you the head start you need to purchase a property, this service can be arranged whether you have yet to visit Turkey. Once an acceptance has been completed, you will know the range of property values you will be able to purchase at and place an offer, confidently knowing that you can raise the necessary finance to support this.
Once an offer has been accepted on a property and the sale agreed, the initial sale of contract is draw up, a contract is normally drawn up, which would include the price, completion date and any other relevant information for the sale. An application of transfer is then made to the land registry, with deposits being paid, legal documents being drawn up, local tax numbers being registered. The property is also valued and the mortgage application reaches final sign off with the appropriate lender, with the mortgage offer being released and the property completion date being set, subject to the title deed transfer timescale, as the title deeds need to be in the same names as the mortgage application.
If you are purchasing a property “Off Plan Property” a mortgage can only be raised by completion of the property, however you are still able to apply for the funds and have the mortgage offer in writing, but the final survey will not take place and funds will not be made available until the property has been completed and fully inspected by the lender concerned.

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Mortgage Types on Offer
RE-PAYMENT MORTGAGES (CAPITAL & INTEREST)MAXIMUM TERM 25 YEARS, WITH AN AGE LIMIT OF 75 YEARS. MAXIMUM TERM IS 15 YEARS IF LOAN IS BELOW €150,000LOANS AVAILABLE IN EUROS ONLY