Calis Beach and Fethiye Turkey Discussion Forum
Property For Sale in Calis Beach & Turkey => Buying Property in Calis Beach, Fethiye and Turkey => Topic started by: misterno on July 09, 2011, 21:13:51 PM
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As you may know from the other thread, I am interested in buying property in Turkey and I researched and found out that banks in US does not do that. But I found several companies in the UK to do that.
After emailing and talking to some of them, this is what I learned;
1) Living in the US is not an obstacle to get a loan from an UK financial institution as long as my paycheck is in USD and mortgage is in USD.
2) They mortgage up to %90 of the property value and up to 20 years. But the interest rate may have to be reset every 1-2-3-4-5 years depending on your choice. Currently 5 year reset is %7.3 and 2 year is around %5.5
3) There is %2 penalty for early termination of mortgage.
4) Here is what I don't understand. In the disclosure, here is what it says;
Cross border mortgages are not regulated by the FSA even if the broker is regulated by the FSA
Here are those companies
www.deleted.com
www.deleted.com
Any comments will be greatly appreciated.
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I am baffled as to why a Turkish man, living in the USA, wants to obtain a mortgage in the UK to buy a property in Turkey. My guess would be that he has some connection with the two companies mentioned - but that's me, a suspicious sort.
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You must be a fan of Monty Pythons famous song ,it does mention the word spam a few times.
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quote:
Originally posted by Scunner
I am baffled as to why a Turkish man, living in the USA, wants to obtain a mortgage in the UK to buy a property in Turkey. My guess would be that he has some connection with the two companies mentioned - but that's me, a suspicious sort.
In Turkey, mortgage rates IF ANNUALIZED and with value added tax and other additional expenses comes up to %20 and they do not loan more than %50 of the value of the property.
But I can get a %5.5(annual) interest rate on a 20 year mortgage for %90 value of the property from UK. (unfortunately banks in US don't do this)
Also, mortgages for Turks based on non-Turkish Lira is against the law in Turkey.
And, I have no connection with those companies linked in the first posting, If it is against the forum rules, please let me know and I will delete it.
Am I clear now?
Here is my other question;
Do any of you obtainmortgage in UK to buy a property in Turkey. what were your terms? Interest rate, how many years, taxes, additional cost e.t.c.?
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I would be very interested to see just how this would work. All the UK banks i ever spoke to before moving here flatly refused to loan any monies on any foreign properties. But then again i am english born and bred and seeing as UK has completely gone to rat S%^t these days it never ceases to amaze me that anyone apart from anyone actualy born there can get anything they want.
So keep us all informed how you get on then we can all go back and sue them!
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My daughter has just obtained a Turkish mortgage thru BNP Bank(French), the mortgage is with TEB bank who I understand are affilliated with BNP. She had to put up 30% deposit of the valuation of the property.
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I can't imagine ANY company in the UK offering 90% mortgages on any property - home or abroad. They haven't been available for a couple of years. Also if they are not regulated by the FSA I would be ultra careful.
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And if they were regulated by the FSA, they would not be allowed to give advice to someone in America.
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I can't see how the lender can possibly cover it's risk, offering 90% in a stagnant foreign housing market.
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Does anyone else get the feeling that this thread isn't going to run much further ? ;)
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I think it might mysteriously disappear, just a feeling...
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As you can see I am not familiar with UK baking system and laws. All I am doing is researching on the internet.
And well put, if it is not regulated by FSA, why should I trust, and if it was regulated by FSA then they would not lend money to a foreigner like myself.
So all these Brits buying property in Turkey, they are using all cash, is that a correct statement?
I will contact Busybee about her posting. I might take that route.
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My daughter has just arranged a 90% mortgage with the Halifax, they are around if you look for them
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Yes but not to buy a property in a foreign country I am sure :)
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quote:
Originally posted by misterno
So all these Brits buying property in Turkey, they are using all cash, is that a correct statement?
No. Most are not using cash, they are obtaining UK mortgages secured on their UK home, not secured on the property the intend buying in Turkey. A small percentage more recently also follow the route busybee mentions, borrowing from Turkey based banks.
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quote:
Originally posted by busybee
My daughter has just obtained a Turkish mortgage thru BNP Bank(French), the mortgage is with TEB bank who I understand are affilliated with BNP. She had to put up 30% deposit of the valuation of the property.
Busybee
Would you mind telling me what the interest rate on that and the currency that the mortgage is based on? Also, which BNP Bank location did your daughter get the mortgage from? Turkey or England? I am not sure if BNP bank has a branch in Turkey or not so I wanted to be clear.
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quote:
Originally posted by cheers
My daughter has just arranged a 90% mortgage with the Halifax, they are around if you look for them
Would you please clarify if this is for a property in UK or Turkey?
Thanks
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quote:
Originally posted by misterno
which BNP Bank location did your daughter get the mortgage from? Turkey or England? I am not sure if BNP bank has a branch in Turkey or not so I wanted to be clear.
quote:
Originally posted by busybee
My daughter has just obtained a Turkish mortgage thru BNP Bank(French), the mortgage is with TEB bank who I understand are affilliated with BNP.
It's clear enough, even for a SOG like me. ;)
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Yes this topic is going nowhere. misterno, please find another forum that deals with mortgage discussions. This is now locked due to being far too boring for words.