News and Updates:
A variety of finance options are available to non residents buying in Southern Cyprus, but banks will not offer mortgages in Northern Cyprus because of the political climate there.
Lenders in Southern Cyprus will generally offer up to 70% of the property’s value, providing it is a non-resident’s first purchase. Subsequent mortgages are available but loans are restricted to a maximum of 60% of the property value.
Both fixed and variable rate mortgages are available; interest rates start at around 6.5 percent. Most Cypriot lenders offer an interest-only option as well as capital and interest, with terms of up to 40 years generally being offered. Applicants (who must generally be under 70) will need to prove their income. As a general guide, most lenders expect an applicant’s existing monthly outgoings, plus the monthly repayment of the new Cypriot mortgage, not to exceed 35% of an applicant’s net monthly income.
Most British buyers opt for Euro mortgages; Often lenders offer less favourable terms or even reduced loan amounts if another currency is chosen. In recent months banks have introduced a variety of mortgages for non-residents, and we believe this trend is set to continue in 2010.
To find out more information about what Cypriot mortgage options are available to you please contact us for a free a no obligation consultation.