PIRAEUS BANK BULGARIAN MORTGAGE SERVICE

Loan purpose

Purchase, re-mortgage or equity release on residential property or land with planning permission in Bulgaria

Interest rate

Fixed margin of 3.45% above variable ECB base rate. 3.7% fixed margin above ECB base rate for interest only option

Currency

Euro

Maximum LTV (based on lower of the valuation or purchase price)

75% for loans €100,000 +

70% for loans €40,000 to €99,999

60% loans on land only

Term

5 to 25 years

Minimum loan amount

€40,000

€75,000 loans to 3 or 4 applicants

Maximum loan amount

No upper limit

Rental income

Up to 20% of rental income may be taken into account on the property to be mortgaged when assessing status

Minimum age

21

Maximum age

65 on maturity of the loan

Maximum applicants

4

Married applicants

In Bulgaria married buyers own the property jointly, therefore the property purchase (and therefore the mortgage application) should be in joint names

Eligibility

UK or Irish nationals

Expatriates retaining UK banking facilities

Repayment method

Capital & interest

Interest only option

For first year

Limited company purchase

Optional, these should be non trading, formed solely for the purpose of this transaction

Loan security

First charge on residential property / land in Bulgaria

Building insurance

Via nominated insurers

Life insurance

Recommended, not mandatory

Application fee

£75 for 1 or 2 applicants. £150 for 3 or 4 applicants

Arrangement fee

1% of loan amount for individuals and 1.5% for Company loans

Valuation fee

Payable by applicant

Legal fees

Applicant is responsible for instructing a Bulgarian lawyer and all fees in this regard. In addition applicants are responsible for the Bank’s legal costs

Early repayment fee

3% in year 1, 2% in year 2