Firstly you can apply for a mortgage in the UK or in Turkey for a Turkish property. In the UK you must have sufficient equity in your UK property to take out an additional or a new mortgage to buy an overseas property. We strongly advise you to seek legal advice to ensure that independent checks are carried out on your overseas property.
Taking out a Turkish mortgage is becoming increasingly popular as the market has become more developed and highly competitive. It also means that the bank will carry out its own legal checks on the property in Turkey and arrange for an independent valuation to take place.
Mortgages in Turkey
Since 2007 foreigners could apply for a mortgage in Turkey; you need to provide the same documents as you would in the UK. Firstly you will need to get a tax number this can be done quite easily at the local Tax Office in Turkey and it’s issued the same day, you will need your tax number before you can open a bank account in Turkey.
The required documents in order to apply for a mortgage loan in Turkey are:
Title deed for condominium ownership or for the right of easement on an individual section, of the house to be purchased.
Photocopy of passport or residence permit or an invoice containing the current address of the relevant person abroad.
Official tax declaration regarding the previous year, to be taken from the country where the client resides.
Latest quarterly payroll signed by the employer abroad (for working persons) or retirement letter (for retired persons).
Bank account book which contains the transactions in the relevant account in the latest 6 months period or credit card/credit account statement (approved by the bank).
Reference letter for employees (approved by employer firm abroad).
An official document certifying personal assets.
Credit Registration Bureau (CRB) Record from the country where the client resides.
Copy of an invoice (water, electricity, etc.) proving the address of the client in the country where he/she resides.
Required documentation
All of the documents are required for the “Borrower” and for “Surety” if any, and it is essential that originals of these documents be shown at the time of application. Official translation of all documents other than Turkish or English to English is required.
Deposit for a mortgage
Generally, you will need to put down a deposit of around 30% of the value of the property you wish to buy; this is the current deposit value. There is also a minimum loan value again at the moment that is 75,000 Euro but that could change. All up-to-date information can be given to you when you arrive in Turkey to view the portfolio of properties we put together for you.
It can sound daunting however when you use the services of a reputable agent such as ourselves we can guide you through the process. We can also get the best interest rates available due to our strong working relationship with the best banks.
