Cyprus remortgages??

Discussion in 'Cyprus Property' started by neilmacca, Feb 2, 2009.

  1. neilmacca

    neilmacca New Member

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    Can anyone shed any light on remortgage deals available on properties in Cyprus.

    I have a repayment mortgage on a property near Larnaca, and our mortgage currently with Alpha Bank is on a rate of 7.05%!!

    I have made a few enquiries into switching this to maybe interest only (which we have been told is no longer available due to current financial climate)...and also just a straight switch to another competitve rate....all with no sucsess.

    It seems we are being held at gun point with this deal, and do not know where to turn to try and obtain a better deal, as the one we are currently paying is way too high considering most countries mortgage rates have plummeted!!

    Would appreciate any advice from people.;)
     
  2. Veronica

    Veronica Administrator

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    Neil all the banks in Cyprus are currently very reluctant to give mortagages at all.
    You are very lucky to have a mortgage as many people are being turned down even with 50% downpayments.
    My advice is to ride out the storm for the time being. We have clients who have been waiting for 6 months for a mortgage despite a good downpayment and very good earnings. Another client has been forced to pull out of their purchase as the bank has changed the goalposts at the last minute.
    Alpha bank is one that is just not giving mortgages at all and we have been told that is thanks to one particular developer owing them half a billion.:eek:
    Not sure how true that is but it wouldnt surprise me knowing the developer concerend:(
     
  3. frankburke8

    frankburke8 New Member

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    Hello,

    Any chance of disclosing which developer that is concerned. I'm a little concerned myself after purchasing a property in Oroklini 4 years ago and stil waiting on the title deeds.

    Frank
     
  4. frankburke8

    frankburke8 New Member

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    Emporiki

    I received a 15 year loan from Emporiki Bank 4 years ago on the base rate + 1.6%. I renogotiated this down to base rate plus 1.25% after getting a qoute from the Laiki Bank 18 months ago. In November 2008 I received letter from Emporiki stating due to the terms and conditions they were increasing the spread from 1.25% to 3.5% bearing in mind the base rate was around 1.5% at the time (Total rate of 5%).

    I argued my case to them until I was blue in the face with several lengthy phone calls, emails and flying over to have a meeting with the Credit Control manger in my branch. I argued the point that the U.K. had dropped there rates to 0.5% and all the banks were passing on these cuts so how can they justify the increase? I also went to several other banks who said which could not compete with the rate I was on.

    I received another letter in February 2009 that they were again increasing the spread and I am now on total rate of 5.5%. Again I argued my case with no results. As far as I was led to believe when I took out the loan I would pay the base rate plus 1.6% spread (renegotiated to 1.25%) for the total length of the loan. They changed the goal posts to suit themselves basically and as there was small print in the contract stating they could basically do what they wanted when they wanted I don't have a leg to stand on. So in principle although my loan should be lower they have also told me that any future mortgages to expats would be going out at 7% - 7.5% so they stated I was lucky. They did offer remortgage but stated I would go up to higher 7% rate everyone else was on. They have only kept me on the lower rate because they said I have been with them for a few years and an excellent customer.

    How long this lasts though is anyones guess; and although it feels unfair I count myself lucky compared to new clients. By all means keep looking and trying for a rduced rate but I would say ride it out and renogotiate when the market changes again but this could be years??

    Frank
     
  5. Veronica

    Veronica Administrator

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    Its a developer that builds in the paphos area frank so should not affect you in any way.
     
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