Mortgage Funding

Advice on arranging a mortgage for your Kalkan property

Many UK buyers raise funds by arranging a loan advanced against a property in their home country, however, many Turkish banks offer a mortgage product for non Turkish nationals secured on a Turkish property. Turkish interest rates are at a historic low (as of November 2013) at 4.5%, which makes this option more attractive than ever before, however, mortgage rates remain higher than in the UK and there tends to be less flexibility in Turkish mortgage products. Loans can be arranged in Turkish Lira, British Pounds, Euros and Dollars.

The lending criteria is generally as follows;

  1. The loan will be to a maximum of around 70-75% of the banks property valuation
  2. The maximum repayment term is 15 years
  3. Applicant age range is typically 25 to 70, although the applicant must be no older than 70 when the loan matures.
  4. Income that can be shown as being received into a bank account is considered in making an assessment about affordability, as is pension income.

You will need;

  • Bank statements for at least the last 3 months
  • Your P60 for the last financial period
  • Payslips for the last 3 months

For the self employed;

  • The last two years audited accounts for your business
  • Your own personal tax returns for the last two years
  • Your personal bank statements for the last 3 months

Once an application is completed and submitted to the bank, an appraiser will visit the property, and provided the property meets the bank's lending criteria, a mortage offer will be made in writing.

This offer is generally valid for 3 to 4 months and will outline all the terms and conditions of the mortgage.

To conclude the transaction, an appointment will be made to the bank to pay out the loan and put the mortgage on the title deed at the Tapu office.