international mortgages

cyprus

Essential information for buying properties in Cyprus

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is of paramount importance to seek independent advice from an overseas solicitor.

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender. If it is a new development, the lender will require security to be offered in the form of a bank guarantee, which may be up to 1.80% of the loan amount.

You should check with the estate agent and/or your lawyer and/or your notary that you are aware of the costs charged by legal and Government authorities for buying a Cypriot property. The solicitor may be incorporating costs for assigning the mortgage within his charges, along with the title deeds to the land registry. You should establish the actual cost of these before proceeding with a loan application. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the property purchase price.

Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevantapplication form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding, and you may forfeit any deposit monies paid.

There will also be a Government Mortgage Registration fee of approximately 1% and a Government Stamp Duty of up to 0.20% payable when the Lender registers the loan.

Do I qualify for a Cypriot mortgage?

To qualify for a mortgage in Cyprus, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete the application form, and Conti won’t charge you for this service.

How much can I borrow?

Calculation based on the valuation or purchase price, whichever is the lower

Up to 70% LTV available for house purchase, remortgage, home improvements or construction. 80% LTV is available for applicants either permanently residing in Southern Cyprus, or living there for at least 180 days per year.

Based on joint monthly gross pay, where joint income is applicable

Existing liabilities, e.g. mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Cypriot mortgage payments. All this must not exceed 35% of your monthly gross income, dependant on the final lending scheme

What evidence of income do I need?

If you are employed:

Your original last three month’s payslips
Your latest original P60 or Employers Reference
Your original last three month’s personal bank statements

If you are self-employed:

Your last 2 year’s audited accounts or possibly by accountant’s letter and personal tax returns
Your original last three month’s business statements
Your original last three month’s personal bank statements.

Example mortgage payments

If, for example, your gross joint monthly income is £2,500, 35% of this equates to £875. If your only liability is your mortgage payment, of say £300, this would leave a balance of £575 for your Cypriot mortgage repayment

What types of Cypriot mortgages are available?

For our latest rates and to see the different types of Cypriot mortgages on offer, please visit our website or speak to one of our advisers.

Currently covers Southern Cyprus only
Loans available from 70% of the property’s value or purchase price, whichever is lower.
The maximum term of any mortgage is 40 years, this varies on the type of loan.
Mortgage are only available on a repayment basis.
The minimum loan you can take out is €100,000

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

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