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Turkish Mortgages
Step by Step Guide to apply for a Turkish Mortgage:
1) Calculate your budget – speak to our Turkish mortgage consultant at Baydonhill International Mortgages (BIM) and obtain a free decision in principle from one of our lenders.
2) Decide on a property and make sure you obtain the IKSAN for this property.
3) Appoint a Turkish solicitor and obtain a Tax ID number from the tax office.
4) Open a bank account with the lender
5) Sign preliminary sales agreement and send this on to the lender
6) Get the Military Zoning Permission from the Land Registry Office
7) Submit full mortgage application to BIM with all required supporting documentation in order to obtain financial approval within approximately 48 hours.
8) Obtain full approval for your mortgage application, upon return of a positive valuation report from the bank’s appointed surveyor.
9) Receive Turkish Mortgage offer by post keep this for the required cooling period; before signing and returning directly to the bank.
10) Set up an International Regular Payment Plan with Baydonhill FX to cover monthly mortgage repayments, utility bills etc and give you greater peace of mind.
11) Transfer purchase price balance and legal fees to your solicitor through Baydonhill FX
12) Arrange mortgage completion date for the seller and the deed officer. Funds will be released into your account and a cheque corresponding to the amount will be issued by the bank to be given out to the seller on the date of completion.
13) Sign the relevant documentation to become the new owner of your Turkish home.
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Eligibility & criteria
Mortgages are in Euros and will be secured on your Turkish property. Mortgages are full status and proof of income and outgoings will be required.
The maximum loan to value (LTV) available in Turkey is 70% of the purchase price and 60% for equity release on existing properties.
Our lenders assess eligibility on the applicant's capacity to repay the loan. As a guideline, your existing monthly outgoings as well as the repayment on your Turkish loan should not exceed 35% of your gross monthly income. Future rental income from the Turkish property will not be considered as additional income. Mortgage, rent, personal loans and maintenance commitments are considered as outgoings. Speak to our Turkish consultant to find out the maximum that you are able to borrow.
Our Turkish lenders will not consider lending to UK companies.
Not all areas of Turkey are covered by our lenders. The list of locations in which your property must be located is: Istanbul, Ankara and Turkish Riviera ( Izmir, Bodrum, Marmaris, Fethiy, Manavgat, Kemer, Alanya). This is not an exhaustive list, so please contact BIM if your location is not listed.
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Types of Turkish Mortgages
Mortgages can be obtained for the purchase of new or existing properties, provided that the property has been completed in line with the official plans.
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Turkish Mortgage Products
A variety of products are available on a capital repayment basis only, on a variable or fixed-rate basis or a combination of both. Mortgage rates are indexed against the Euribor . Terms can be from 5 to 20 years however loans must be repaid by the time applicants are 80. Many of our products do not have any early redemption penalties. For an initial idea of rates and monthly repayments, use our quick quote online mortgage calculator, or else complete a personalized quotation request form and we will send you a tailored quotation.
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Documentation required
Our lenders are legally required to request full documentation proving that the borrower can afford the mortgage repayments, and therefore you will be required to submit a significant number of supporting documents. Please see below for a summary of what will be required. A detailed list will be compiled based on your situation and sent to you with your personalised quotation.
* Proof of identity & residence
* Proof of income & outgoings
* Bank statements
* Property details and documents
* Proof of personal contribution to the purchase
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Timeframe
A financial approval can be obtained from a lender once all the requested documentation has been submitted. This takes approximately 48 hours.
Once your mortgage offer has been issued, you will need to respect a 10 day cooling period; and will not be able to return the offer to the bank until this time has passed.
A minimum of 10 weeks should be allowed from application to completion.
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Life assurance
Life assurance is mandatory with our lenders.
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Buildings insurance
It is a requirement that clients take out buildings insurance with the lender. Natural risks insurance (DASK) is also mandatory.
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Turkish Bank account
You will be required to open a Turkish bank account with the lender.
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Completion
Mortgage funds will be released for completion of the purchase.
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Typical Set up costs for Turkish Mortgages
Bank’s arrangement fee – typically 1.5% of the loan amount. Should the lender wish to carry out a valuation, this will normally be covered by the arrangement fee.
Real estate acquisition and purchase levy – 3% of the sales price (1.5% from the buyer and 1.5% from the seller).
BIM charges a non-refundable application fee of £500
We recommend that professional legal & tax advice should be sought to protect your own interests.
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£1 = 
$1.5124 / 
€1.1695
