Overseas Finance

Property Finance in Bulgaria

 

Overseas Mortgages Direct's Guide to Property Finance in Bulgaria

At a glance:

	Mortgage	Refinance	Equity Release	Buy to Let
Maximum Loan to Value	70%	70%	n/a	n/a
Maximum Interest only period	2	0	n/a	n/a
Maximum Term	20 years	20 years	n/a	n/a
Maximum Age on Completion	70	70	n/a	n/a
Average Interest Rates	7%	7%	n/a	n/a
Average Monthly price per thousand	7.75	7.75	n/a	n/a

Process:
Due to the relative infancy of the market, there are limited options in the Bulgarian market. With a large volume of documents and licences required by the developer, before the mortgage can be approved, delays are quite common. With a general lack of experience with non resident clients looking for mortgages in Bulgaria , delays are commonplace. Bulgarian banks occasionally change their criteria during the mortgage process affecting all clients.

Approximate timelines (weekends not included):

1.	Approval in principle	Instant
2.	Final licences	Day 1
3.	Property registration details	Day 28
4.	Application (receipt of documents)	Day 1
5.	Power of attorney	Day 1
6.	Confirmation of approval in principle	Day 7
7.	Valuation	Day 12
8.	Formal offer	Day 40
9.	Arrange signing	Day 45
10.	Signing	Day 50
11.	Transfer of deeds	Day 50
12.	Payment to developer	Day 60
13.	Agency of service	Day 51
14.	First mortgage payment	Day 51
15.	Commission received	Day 80

Costs:
For guidance purposes, as costs vary from lender to lender:

Cost	Amount	Payable
Application / bank fees	€200	Up front
Valuation fee	€500	Up front (refundable)
Opening commissions	2% of loan amount	On signing
Registry / Notary fees	1% of purchase price	On signing
Agency of service	€120	Annually on signing date

Currencies:
Bulgarian Mortgages are available in euros and Lev.

Source: Overseas Mortgages Direct