MTGs in Cyprus?

Discussion in 'Cyprus Property' started by grahamdbrown, Jan 8, 2011.

  1. grahamdbrown

    grahamdbrown New Member

    Hi All,
    How do mortgages compare in Cyprus to the UK?
    In particular: LTV, Rate etc?
    Consider in respect of a someone who may have only been resident <1 yr.
    Graham from London
     
  2. Veronica

    Veronica Administrator

    The length of time you have been resident does not matter.
    If you want a mortgage you need at least 30% downpayment.
    Also unless you are buying a new build through a developer you will need to find a property that has title deeds because the banks will no longer give mortgages on resale properties without title deeds unless the developer who built it is willing to give a corporate guarantee. Most developers no longer will give these guarantees as they have been left with properties that they have given guarantees on and the buyers have defaulted leaving the developer holding the can.
    As for mortgage rates, at present they are a lot more than in the UK.

    Veronica
     
  3. Veronica

    Veronica Administrator

    There are actually already a lot of bargains to be had. Many resales are being sold for a lot less than their asking prices because people want to return to the Uk (or wherever they came from) for one reason or another.
    However to take advantage of these bargains you do not to be a cash buyer as vendors will often take silly offers if the buyer has cash.
    It certainly is not the time to buy for investment or if you need a big mortgage.
    The only people who in my opinion should be considering buying in Cyprus are those who are retiring here, have a good pension to live on and have cash to buy with.
    The time for buying holiday homes and taking out big mortgages hoping to cover them with rental income is in the past and in my opinion many people bought at that who were never really in a position to buy.

    Veronica
     
  4. bendybunny

    bendybunny Member

    Graham,
    There is some good advice from both Mark and Pippin above, on top of this the property must have title deeds if not just walk away or live to regret it.

    The values at present can only go down, my top tip look elsewhere!

    BB
     
  5. MUNCHER

    MUNCHER New Member

    Hi Pippin
    You said that developers are not giving corporate guarentees anymore as they have been left to carry the can when investors default on their properties but does not the debt still lie with the defaulter and the bank will chase them anyway leaving the developers guarentee not worth anything. Munch
     
  6. Veronica

    Veronica Administrator

    I think that if the bank cn't get their money from the defaulter the banks can go after the devlopers.
    We have been speaking to one smaller developer who used to give corporate guarantees but is now stuck with several mortgages which have been defaulted on and refuses to sign any more guarantees. (It cost us a sale:hmpf:)
     
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