You can obtain a mortgage in the United Kingdom or Turkey to buy a property in Turkey for sale. To take out an extra or new mortgage in the UK to purchase overseas property, you must have ample equity in your current home. We strongly encourage you to seek legal advice to ensure that your overseas property is subjected to independent inspections.
As the market is becoming more established and competitive, taking out a Turkish mortgage is becoming increasingly common. It also implies that the bank will conduct its legal, due diligence on the property and plan an independent appraisal.
Foreigners have been able to apply for a mortgage in Turkey since 2007 and must provide the same documentation as they would in the United Kingdom. First, you will need to obtain a tax number, which can be obtained quickly at a local Turkish Tax Office and released the same day. You will need your tax number to open a bank account in Turkey.
The required documents to apply for a mortgage loan in Turkey are:
The title deed for property or a right of easement on a specific part of the house to be bought.
A photocopy of the relevant person’s passport or residency permit or an invoice with the appropriate person’s current address in another nation.
Official tax declaration for the previous year, to be obtained from the client’s home country.
The most recent quarterly payroll for working people is signed by the employer overseas or a retirement letter (for retired persons.)
Credit card/credit account statement or bank account book includes transactions in the applicable account for the previous six months (approved by the bank.)
Employee recommendation letter (approved by employer firm abroad.)
A legal document that certifies a person’s personal properties
Credit Registration Bureau (CRB) information from the client’s home country.
Copy of a bill (water, electricity, etc.) proving the client’s address in the country where he or she lives.
The official translation is required
All of the documents are needed for the “Borrower,” and, if applicable, the “Surety” and originals must be given at the time of application. All documents that are not in Turkish or English must be translated into English by an official translator.
What deposit do I need?
You will be required to give a deposit of about 30-50% of the property’s value; this is the current deposit value. There is also a minimum loan value, which is currently 75,000 Euro but may change in the future. When you arrive in Turkey to see a portfolio of properties put together for you, you will be provided with all the current details. It can seem intimidating, but if you use the services of a trustworthy agent, they will walk you through the process.
Example of borrowing:
A maximum loan of either 80% loan to value
The maximum term of the loan amount is 15 years
Rates from approx. 7% GBP
Taking out a Turkish mortgage
Taking out a Turkish mortgage is becoming increasingly popular, and the market is expanding and becoming more competitive, which is suitable for the investor. Foreigner mortgages were only introduced in 2007, but they are still relatively recent in Turkey. The availability is generally acceptable, and foreigners are asked to provide proof of employment, such as wage slips, as they would in the United Kingdom.
With this in mind, lenders also prefer shorter loan periods, so 10-15 years is the default, with a median interest rate of about 7%. Another benefit is that the lender performs legal checks and arranges a valuation on the land. Foreigners’ mortgages are usually in Sterling or Euro, which is preferable for an international mortgage to mitigate exchange rate problems since we all know the demand fluctuates.