It is possible to 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.
If you have sufficient equity you need to consult your financial advisor or your current bank for the best way to apply. You can ask about the most common ways to get a mortgage on a foreign property. You can arrange an overseas mortgage through a UK bank or an international lender. It’s also common to raise the funds to buy a home abroad outright by remortgaging your UK property.
Your personal circumstances will be taken into consideration and how much of your existing mortgage has been paid off. You’re up to date credit rating will also be looked at as well as the current interest rates at the time you apply. All of the main high street banks in the UK operate an international mortgage service but you must ask do they provide an overseas mortgage to buy a Turkish property.
Generally, banks only provide overseas mortgages for property purchases in the countries they have branches in. Its true to say that its probably easier to arrange an overseas mortgage in the likes of Spain or France or other European countries. Nevertheless, do ask about a mortgage in Turkey.
It could be that once the UK bank has arranged your mortgage for you, you then need to deal directly with the bank in Turkey. Don’t let this put you off there will be a representative in the bank who will speak good English to take you through the necessary steps.
It is possible to arrange a mortgage with an overseas lender using a specialist broker. These brokers can give you all the information you need specifically tailored to your needs and they can often recommend reputable and impartial lawyers and estate agents in Turkey.
It is possible you may get a much better mortgage rate deal outside of the UK, so do take care when considering all the options available to you. It is important to remember that overseas mortgage brokers are not covered by the Financial Conduct Authority so if you are given bad advice regarding an overseas mortgage outside of the UK you are not covered.
Also, bear in mind that by borrowing in a foreign currency the fluctuation of the exchange rate can and will affect your mortgage repayments. At the current time in Turkey, you will need to put down a deposit of around 30% of the value of the property you wish to buy. It is a much bigger deposit that you would be expected to put down in the UK for a standard mortgage. Mostly this deposit is non-refundable so don’t part with your money unless you’re absolutely sure.
