Can I Get a Bulgarian Mortgage?
At present, it is difficult to find organisations within the UK that will provide mortgages for the purchase of property in Bulgaria. This will change in time, just as it has for other areas such as France and Spain. As an emerging market, Bulgaria has yet to convince the majority of financial establishments that it's a worthy location.
There are a number of approaches that you can take to finance your purchase. By far one of the most popular approaches is to re-mortgage your own home to release the equity. This can sometimes provide a considerable amount of money for investment purposes. Simply contact your mortgage provider and ask them about their additional borrowing facilities (against your mortgage). They will be more than happy to assist you - after all, they will be increasing their own income and stand to gain from your interest payments!
However, if you are not this fortunate or have already spent the money you have released from the equity in your home, you will have to consider otheroptions. Perhaps you can borrow some money from friends or family? You could also consider releasing any money that you may have tied up in shares, savings accounts, ISA's etc.
The other option, although less favourable, is to consider applying for a personal loan. Personal loans are offered by a large number of organizations who compete heavily on the interest rates - with the UK offering rates as low as 6.2 per cent currently.
When considering such additional financial obligations, you do of course need to ensure you can afford the payments (foremost) and that you can reasonably predict a return on your investment that is substantially above the interest rate of your loan. That's easier said than done of course, because none of us have a crystal ball, and can realistically predict the future. But there are market reports produced by well respected organizations that do forecast economic trends in real estate and these can act as your guide when making such important decisions.
Finally, there are overseas mortgage specialists who can organise mortgages in many countries. For example, Conti Financial Services (www. mortgagesoverseas.com) now provide finance options to purchase property in Bulgaria provided that you meet certain criteria.
Summary of Financing Options
In summary, then, you can look at the following sources for generating the money to purchase your property in Bulgaria :
- Your personal savings, ISA funds, premium bonds, fixed deposit certificates etc.
- Your stock market shares
- A low interest (or no interest) loan from friends or family members
- Additional borrowing on your mortgage (sometimes referred to as 'flexible loans')
- A personal loan
- If in a two-car family, the sale of one of the cars (a small price to pay, perhaps!)
- Approaching a Bulgarian bank for a mortgage (you can but try!)
- Approaching a bank in your own country for a mortgage on a property in Bulgaria
- In extreme cases, when you want to 'live the dream', the cash remaining from the sale of your own house!
- Contacting an overseas mortgage specialist (e.g. CONTI FinancialServices, who now provide financing options for properties in Bulgaria)
