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Learn More About Buying Property in Bulgaria and Bulgarian Mortgages

In year 2003, overseas property real estate prices average growth rate reached 12 % for the entire real estate market in Bulgaria. We anticipate that the trend will slow down and will keep a moderate, but systematic pace of increase until year 2007, the tentative year scheduled for Bulgaria to join the European Union.

Unlike France and Spain the local property market is experiencing an impressive revival and looks more lucrative than ever since the introduction of free market economy in the early 90s. Several factors contribute to this phenomenon:

Bulgarian treasury enjoyed a 21 % increase in tourism income for 2003, Economy Ministry announced on Wednesday.
The reported flow of USD 1.622 B has outreached the expected results of about USD 1.5 B. That financial picture is even more impressive on the background of the global decreasing trend in the sector, marking a 1.2 % slope in 2003.
A total of 4.047 million tourists have come to Bulgaria over 2003, which makes for 17.9 % more visits than previous year. December only, when the winter season kicked off, has seen a 28.34 % increase of tourist flocks.
Greece tops the list of mostly interested in Bulgarian holiday making, with 547,000 visitors, Germany and Macedonia at its heels. The official data showed that Bulgaria has become even more attractive to the EU with 25-30 % more tourists from there.
Bulgaria is the fastest developing tourist destination on the Old Continent, according to surveys of the European Tourism Commission.

Mortgages in Bulgaria for non-nationals have in the past been very difficult to obtain. However changes in recent months now means that finance in now available on property. Although the purchase of land by non-national is still a few years away, it is coming. In most cases a Bulgarian Mortgage Lender will consider Non-Nationals applications, some lenders will restrict the availability of lending to certain Nationals of certain countries, it's always better to check before you commit yourself. Contact us

Mortgages for residential property only.
Please note, that if the property is a flat being built, funds are not available until completion and the flat has been legally registered in your name. This will also apply for a new house/villa, however, if the land is already purchased and registered in either your name or a Bulgarian Company (with you as legal owner of that Bulgarian Company), Stage Payments may then be available on a drawdown basis to construct the property - details on request

Loans available for the majority of Nationalities for either House Purchase or re-financing for other purposes including Home Improvements.

Loan purpose Purchase, re-mortgage or equity release on residential property or land with planning permission in Bulgaria Interest rate Purchase - Fixed margin of 3.25% above variable ECB base rate. 3.45% fixed margin above ECB base rate for interest only option Remortgage - Fixed margin 3% above ECB base rate. Currency Euro Maximum LTV (based on lower of the valuation or purchase price) 75% for loans €100,000 + 70% for loans €40,000 to €99,999 60% loans on land only Term 5 to 25 years Minimum loan amount €40,000 €75,000 loans to 3 or 4 applicants Maximum loan amount No upper limit Rental income Up to 20% of rental income may be taken into account on the property to be mortgaged when assessing status Minimum age 21 Maximum age 65 on maturity of the loan Maximum applicants 4 Married applicants In Bulgaria married buyers own the property jointly, therefore the property purchase (and therefore the mortgage application) should be in joint names Eligibility UK or Irish nationals Expatriates retaining UK banking facilities Repayment method Capital & interest Interest only option For first year Limited company purchase Optional, these should be non trading, formed solely for the purpose of this transaction Loan security First charge on residential property / land in Bulgaria Building insurance Via nominated insurers Life insurance Recommended, not mandatory Application fee £75 for 1 or 2 applicants. £150 for 3 or 4 applicants Arrangement fee 1% of loan amount for individuals and 1.5% for Company loans Valuation fee Payable by applicant Legal fees Applicant is responsible for instructing a Bulgarian lawyer and all fees in this regard. In addition applicants are responsible for the Bank’s legal costs Early repayment fee 3% in year 1, 2% in year 2

Bulgarian Property Links

NewPropertyFinder

• Mortgage lending potential - currently, mortgage loans are 5% of the total credit supply within the local banking sector. In developed credit markets, this rate is usually in the range of 15 - 20%.

  Source 'Domestic Diplomatic Properties Agency'

Convinced Bulgaria is your next property purchase in the sun and want some help with the finance?

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Bulgarian Mortgages - What mortgage has provided a buying guide when considering Bulgarian property purchase.

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