To purchase a property in Turkey, you can get a mortgage in the United Kingdom or Turkey. You must have enough equity in your existing home to take out a second or new mortgage in the UK to buy overseas property. We strongly advise you to seek legal counsel to ensure that your foreign property is subjected to independent inspections.
Home loans in Turkey
Taking out a Turkish mortgage is becoming more popular as the market becomes more mature and competitive. It also means that the bank can perform legitimate due diligence on the property and arrange for an independent valuation.
Since 2007, foreigners have been able to apply for a mortgage in Turkey and must provide the same paperwork they would in the UK. First, you must obtain a tax number, which can be obtained quickly and released the same day at a local Turkish Tax Office. To open a bank account in Turkey, you’ll need your tax ID.
To apply for a mortgage loan in Turkey, you will need the following documents:
The land title deed or a right of easement over a portion of the house to be purchased.
A photocopy of the relevant person’s passport or residence permit or an invoice containing the appropriate person’s current address in another nation.
The client’s home country must have an official tax statement for the previous year.
A retirement letter or the most current quarterly payroll for working people is signed by the employer overseas.
Transactions in the applicable account for the preceding six months are included in a payment card/credit account statement or bank account book.
Recommendation letter from an employee (approved by employer firm abroad.)
Credit Registration Bureau (CRB) information from the client’s home country is used to create a legal document that certifies a person’s assets.
A copy of a bill (water, electricity, etc.) proving the client’s residence in the country in which he or she resides.
It is essential to use an official translator
For the “Borrower,” all of the documents are needed, including the “Surety” and originals, if applicable. Official translators must translate all documents that are not in Turkish or English into English.
What amount of money do I need to put down as a down payment?
A deposit of approximately 30-50% of the property’s value will be required; this is the current deposit value. There is also a minimum loan amount currently set at 75,000 Euros but may adjust in the future. You will be presented with all current information when you arrive in Turkey to see a portfolio of properties put together for you. It can seem daunting at first, but if you hire a reputable agent, they will guide you through the process.
A loan with a maximum loan-to-value ratio of 80% is available.
The loan sum can be repaid over 15 years.
GBP rates start at around 7%.
Getting a Turkish mortgage is a good way to get a great deal on a home
Obtaining a Turkish mortgage is becoming more common, and the market is widening and becoming more competitive, which is beneficial to the lender. Foreigner mortgages were first launched in 2007, but they are still new in Turkey. Foreigners are required to provide evidence of jobs, such as wage slips, in the same way that they would in the United Kingdom.
With this in mind, lenders prefer shorter loan terms, so the average is 10-15 years at a 7% interest rate. Another advantage is that the lender conducts legal, due diligence and arranges for a land appraisal. Foreigners’ mortgages are typically in pounds sterling or euros, which is better for a foreign mortgage to avoid exchange rate issues since we all know demand fluctuates.