Property In Bulgaria Free Real Estate Offers

Mortgage Products

Details of the products available through
Bulgarian Home Loans
Currently there are only two companies that currently offer Bulgarian mortgages. Just as the Bulgarian Property market is relatively new as is the availability of mortgages, but as the market matures and with us working with Bulgarian banks we expect the number of available mortgages to increase. The other option available is though a UK re-mortgage or other UK finance loans.

We have set up a specialist team of administrators and mortgage experts to ensure that we offer the best products, service and advice.

Finance Options Available

Piraeus Bank
Piraeus is a Greek bank who was the first lender to enter the market.

Piraeus Mortgages
The Piraeus Mortgage product was the first to enter the market. The application process takes approximately 12 weeks to complete a mortgage with them so do not leave things to the last minute.

Affordability Calculations Piraeus use a full status calculation to decide how much you can borrow, which can be quite restrictive. They will take 40% of your monthly net income and then deduct from this your UK monthly payments for personal loans, credit cards and mortgage. The amount that is left over (if any) is the amount you can commit towards a Piraeus mortgage on a monthly basis. This product is often hard for the self employed, low income earners and those with high monthly commitments to obtain.

Main Features:

Features Comments
Max Loan to value: 70% 70%
Interest Rate
7% Variable
Currency Euro only Euro only
Term 5-20 years 5-20 years
Loan amounts 25K min – No max
Total credit limit Unlimited if fit strict criteria
Available to UK & Irish, individuals or Bulgarian Ltd company
Repayment method Repayment only
Arrangement fee 1% of loan
Banks legal fees €1,200 or €2,000 if they also do your legal work
Valuation fees variable
Insurance Buildings compulsory
Redemption penalties 3% yr 1, 2% yr 2, 1% yr 3
Staged payments Completed properties only
Bank Account Not mandatory

DSK Bank
The largest retail bank in Bulgaria, DSK are the first Bulgarian bank to actively target the UK market.

DSK Bank Bulgarian Mortgage
The largest retail bank in Bulgaria it is owned by Hungarian bank OTP. DSK are the first Bulgarian bank to actively target the UK market and are doing
so by using the packaging services of ourselves.
DSK Bank is the retail banking leader of Bulgaria. Formerly the State Savings Bank, it was the last major Bulgarian institution to be privatised when it was sold to Hungary’s largest commercial bank, OTP Bank, in 2003. DSK now dominates the retail banking sector, particularly in the area of consumer lending.

With a portfolio €1billion of lending DSK is Bulgaria’s market leader and with €0.61billion of that in consumer loans, DSK dominates- more than three times the size of its nearest rival with a 42.9% share of the market. Currently DSK grant 800 loans a day.

DSK also leads the market for individuals’ deposits with a massive 47.4% market share. They are the people’s bank of Bulgaria and are the most recognised brand of any financial institution in the country.

The mortgage only went live on the 1st of July 2005 and we are expecting some teething problems as the bank get used to dealing with UK customers. The language and cultural barriers are significant yet we are working hard to ensure that our clients receive a good service.
The advantage with this mortgage is that it is not strict regarding the status of the applicant however, it is not self cert. They are also prepared to meet staged payments so long as the developer is approved by the bank. We are working with them to ascertain which developers are approved and how new developers become approved.

Main Features:

Features Comments
Max Loan to value: 70% The maximum percentage of the purchase price that the mortgage company will lend.
Dependent on Affordability
and not purely Income
The amount you can borrow will not be calculated using a simple income formulae, it will be decided due to the strength of the case.
Staged Payments available If development is acceptable to bank then they will make staged payments on your behalf. If initial 30% takes building to roof level then development is pre-approved.
Mortgage: Repayment only Each month, the client makes a payment which includes the interest and an amount off the loan value until the loan is fully paid off.
Redemption Term : 5 to 20 years The mortgage can be any period between 5 and 20 years.
Age limitation: 21 to 70 years Applicants must be at least 21 years of age on mortgage commencement and no more than 70 years old on completion
Loan currency : Euro only The mortgage is in euros
Loan amount : 5000 to 200,000 The minimum mortgage is 5000 euros and the maximum single mortgage is 200,000 euros
Total credit: 300,000 After six months, a client can apply for a new mortgage on another property. The total which can be loaned is 300,000 euros.
Interest rate : 7% (variable) The interest rate that will apply to the mortgage, this will change as European Interest rates change.
Bank Account : Mandatory Applicants must create a bank account with the lender.
Management fee 1.3% payable when the mortgage commences
Monthly servicing Every payment is due to charge of 0.5 euros (approx :35p)
Insurance : Mandatory The property must be fully insured
Redemption : Bank base rate The redemption charge is payable if you complete your mortgage before the end of the term. At current this rate is 5% but this is anticipated to drop to 3% for first 3 years in next few weeks.

Simplicity Financial Services
Our sister company Simplicity Financial Services is an independent UK mortgage brokerage that can provide any U.K. mortgage solution.

Simplicity Mortgages
Independent Mortgage Advice by Simplicity Financial Services
It is often cheaper, quicker and easier for clients to re mortgage their existing UK property in order to finance a purchase in Bulgaria. This is due to the currently low interest rates in the UK, allowing homeowners to extend borrowing for home improvements and in this case purchasing property overseas.

Simplicity Financial Services can offer Independent Mortgage Advice for all UK mortgages, commercial finance and international finance as well as personal and property insurance.

Based in Sheffield but able to cover the whole of the UK we aim to ensure that working with us is an enjoyable and informative experience.

For more information, and for advice about the things you need to consider when entering into a re-mortgage deal, please visit the Simplicity Financial Services Re-mortgages page.

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