Turkey Remortgage

Discussion in 'European Property' started by knightrider, Jun 14, 2011.

  1. knightrider

    knightrider New Member

    Can anyone recommend a company who can help with a remortgage or equity release for a property that I already own?

    Seems you can only get a mortgage for new build or buying new but this is an investment and I have healthy rental income from it.

    Best wishes
     
  2. ozsubasi

    ozsubasi New Member

    This is an old thread, but as there have been no replies I thought I would comment.
    I'm not a financial adviser and have no affiliations to any financial institutions.
    HSBC Turkey do provide loans secured on property in Turkey. Perhaps other banks do as well but I'm only aware of this one.
    However, there are some considerations to be made. The maximum loan is 65% of the bank's valuation of the property. From experience this valuation will be considerably less than the market value, as it would reflect what they could hope to get for it in the event of a default and a forced sale.
    The period of the loan can be from 6 months to 10 years, and the rate of interest rises according to the length of term of the loan. Currently it is between 1.25% and 1.55% per month, which is an expensive way to borrow money.
    For mortgages on new properties, I know that banks will not take into account any potential earnings from rentals, they are only interested in current employment.
    For this type of loan however it may be different, but even if it is, the borrower would need to be able to prove the rental income, which would mean producing tax returns showing what has been declared.
    For anyone who may be interested, here is a link to the relevant page on the HSBC website where more detail is provided:
    HSBC Personal Finance Loan
     
    Last edited: Jun 21, 2012
  3. ytokgoz

    ytokgoz New Member

    better if you serach for uk based turkish mortagges if yo uare from uk as they know what they re doing, also denizbank in turkey has mortgages for foreigners too
     
  4. ozsubasi

    ozsubasi New Member

    Are there any UK based Turkish mortgages? As far as I am aware you won't find anyone in the UK offering mortgages secured against property in Turkey. There are some UK brokers around, but unless you can personally recommend one the borrower may be better approaching the banks in Turkey themselves.
    That aside, the question is about re-mortgages not mortgages to buy.
     
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