01.What are your MORTGAGE RATES?

We have the lowest rates and best service available.
Expect to pay around 4.8%  APR  - capital and interest for a first-time mortgage and 5.6% for equity-release on Turkish property .

02. Are they Fixed or Variable?

Both.

Our European rates are for a VARIABLE RATE MORTGAGE but we can provide FIXED RATE PERIODS if you prefer.
However, the amount you pay each month on a VARIABLE MORTGAGE would stay the same throughout the loan term,only the length of the loan would change to reflect the change of interest rates (eg : a 20 year mortgage loan might be repaid in 18 if rates fall)

This should make it very easy to PLAN YOUR FINANCES!

03. What currencies are available?

We can offer both a Sterling (GB Pound) Mortgage or a Euro Mortgage. We recommend the euro mortgage for the most advantageous terms.

04. Must I pay in Euro if I have a Euro Mortgage?

Yes.
Set up a direct-debit from your own Bank in your home country to transfer the repayments each month to the Lender.

Use MONEYCORP( link on : www.istanbulmortgages.com) for easy and inexpensive currency exchange.

05. How much can I/ we can afford for our mortgage per month?

How much you can borrow will depend on your FIXED monthly outgoings (mortgage, loan etc)
These costs together with your Turkish mortgage repayment should not normally exceed one-third of your gross income each month.

The potential rent from your Turkish Property MAY be taken into account when calculating affordability.

06. Can I buy with a partner and include both incomes?

Yes. 

But remember that the people applying for a mortgage MUST be the same names as those appearing on the SALES CONTRACT and Title Deeds. Up to 4 people may jointly buy one property.

07. What financial information do you need from me/us?

You will need to prove the income you state on your application form.
Also, we need an over-view of your finances to build your profile.

REQUIRED DOCUMENTS:

1. Signed Bank Application Form plus:

2. Copy of PASSPORT  and one other form of IDENTIFICATION

3. . Letter from Employer stating your employment terms

4. 2 months’ wage slips

5. 2 month’s Bank statements
6. P60 Tax statement
7. Copy of Tapu (Title Deed) (your seller can supply this in most cases)

For Self-Employed: An Accountant’s Certificate showing the last 2 years’
trading figures plus your current trading position.

Please note: You DO NOT have to send original documents – you will send email scanned copies or faxed copies but please ensure they are clear and of  high quality.

08. What are the age restrictions?

You must be at least 19 and no older than 70 at the maturity of the mortgage.
So if you are 60 now, you can only take a maximum term of 10 years and so on.

09. How long are the mortgage terms?

From 7 to 20 years – but you may sell your property at any time.Early settlement fees MAY apply if you sell during a fixed-rate period or if you sell earlier than 7 years.

10. How long does it take to get a Mortgage?

There are 2 aspects to this:
1) getting the mortgage offer
and
2)the legal transfer of title to you.

ISTANBUL MORTGAGES can process your mortgage, get you a definite offer and value your property usually within  4  weeks of receiving all your documentation in our UK office.
There is then a “cooling-off” period of 10 days before you can post back the Formal Offer.
Allow for 6 – 8 weeks to get your mortgage funds released.

However, our Lender can only release the funds once you have got Military Clearance and the Title can be transferred into your name.

11. What services will ISTANBUL MORTGAGES offer me?

ISTANBUL MORTGAGES will remove most of the strain and stress out of securing your finance for you. Our main services:

1. We offer you a CHOICE of Mortgages from different Lenders

2. We ADVISE  you on the best mortgage for your individual circumstances. We will provide an illustration  of how much you could borrow and how much it will cost

3. We will give you a fast Decision-in-Principle

4. We will then package your application documents to send to the Bank, first checking them to ensure that they are complete

5. Part of this process will involve us contacting the Seller and your Lawyer to get certain key documents such as the Sales contract, Title deed and Habitation Certificate

6. During this time an independent appraisal company will be sent to value your property, and we can arrange for you to open a Bank account in Turkey and obtain a Turkish Tax number

7. Istanbul Mortgages will be on hand to SOLVE ANY PROBLEMS that may arise (they so often do!) during the whole time

8. You designated Istanbul Mortgage consultant will keep you  fully informed of the progress of your mortgage and assist you whenever required (you may also check your application’s progress on line at anytime).

12. What are Istanbul Mortgage’s fees?

Our initial advice is free. We can advise on the best mortgage for you and whether you will be eligible for a mortgage, and how much you can afford to spend.

If you decide to proceed and send us your Application Form with supporting documents, then we charge a fee of £760. 

We will refund £500 if YOU DO NOT GET AN OFFER of any kind.

If you do get an offer fort any amount and on any terms, or if you cancel your application for any reason at any stage then  there will be no refund.

Bank charges are separate (see below) – but you will not need to pay these until the funds are released.
Valuation fees are included in these amounts.

We cannot be responsible for the terms and amount of the final offer that the Bank may make, not the valuation placed on your property.

13. What are the Bank’s charges?

1.5% of the mortgage amount  with
MAXIMUM fee: 2500 euro per property
MINIMUM : 1500 per property

These fees can be spread over the first 24 monthly instalments.

You will need to deposit this in your account as soon as you have accepted the Offer in order for the funds to be drawn-down.

14. Who are ISTANBUL MORTGAGES?

ISTANBUL MORTGAGES is a British-owned UK registered company   specialising in mortgages to foreign buyers of Turkish property,with offices in London and represenational offices in Turkey.

We work with both Turkish and European Banks.

We can advise you on how much you can borrow and then supervise your application from A to Z. Our aim is to make buying in Turkey easy, fast and affordable.

15. Are you FSA Regulated in the UK ?

Overseas Mortgages are not regulated by the FSA. but we follow their code of practice. We are members of the British Chamber of Commerce, Turkey and our mortgages are governed by the Banking laws that operate in the country where our Lender is registered.

16. Would you recommend a 5 year mortgage if I intend to sell in the foreseeable future?

It’s up to you.
If you want to pay the lowest MONTHLY AMOUNT, take the 20 year term. You can sell at any time and take the profit on any increase in your property value.
You will only have to pay a redemption charge if

1. You sell before 7 years (minimum term)
2. Or you are on a FIXED RATE option

17. Can I buy OFF-PLAN?

Basically - NO.  You can normally only apply for a mortgage on a property that is completed – or will be completed within 4 months of the start of your application.

18. How long will my mortgage offer be valid for?

Your normal mortgage will be valid for 4 months to give you time to get the above completed.  We can extend this if we see you need a little longer, but you may need to supply up-to-date bank statements.

19. What is your valuation policy?

Our independent valuers assess the asking price against similar properties sold to foreigners in the area.

20. What happens if my property fails valuation or I change my mind about the property I wish to buy?

You can use your mortgage offer to buy another property within the time frame.
However, we are not responsible for any deposits you may have paid under the first contract.

21. Do I have to pay extra for a Buy-to-let mortgage?

No

22. Can I include projected rental income in my affordability calculation?

Yes

23. Can I use my mortgage to pay a developer currently offering an Installment plan?

No

24. When will your Bank release the money to the seller?

When the TAPU (Title Deed) is ready
When the property has a habitation licence
When you have military clearance

25. Do I have to be a UK citizen or Irish National to Apply?

We accept applications from nationals from over 84 countries, including Tuirkish citizxens with dual-nationality.

26. Is a RESIDENCY PERMIT a necessity for a mortgage?

In 90% of cases – no.

27. Will I be subject to CREDIT CHECKS in my home country?

Yes. To speed your application, you can provide your own recent Experian or Equifax credit Report with your documents.

28. Do I have to open a Turkish Bank Account?

Yes – even if the mortgage funds come from outside Turkey and you have to pay a European Bank . The Turkish Bank selected must be one of our co-respondent banks, and you may need to open an account just to receive the funds before paying  the Seller -  and to pay your insurance (Earthquake (DASK) and Building insurance.

29. Can I use this account for general Banking in Turkey?

YES - you can pay regular utility payments by direct debit from your new Turkish account, which will be convenient, if you are not permanently in the country.
We can also arrange for you to have a debit card to use at ATM cash
machines and a credit card (subject to application)

30. What is Military clearance?

THIS IS VERY IMPORTANT. If you are in the process of buyıng you property, and do not know about it – contact us / your lawyer / your Agent immediately. It ıs a pre-requisite to ownership.

There are 2 kinds of MILITARY CLEARANCE.

One, to clear the land for foreign purchase it should not be in a military sensitive area. 

Two, on an individual buyer to check that the buyer is not a fugitive, criminal or terrorist!  Your lawyer or representative or you yourself (not recommended) sends a
translated and notarised copy of your passport/s together with the title
deeds (Tapu) to the local military authorities in the area you are buying.

Since this can take from 2-3 months or longer, we need to ensure that the seller will wait for you to obtain it.  Unlike some cash purchases where the buyer is prepared to pay in advance of getting military clearance (which is always provided except in exceptional cases), our Banks will not release the funds until you have military clearance and can be the confirmed legal owner of the property.

31. Do I have to travel to Turkey to get my mortgage?

It is advisable to go at least once to open a Bank Account – but if you cannot then your representative (usually your Lawyer) can act on yor behalf with the Power of Attorney you grant him.

The wording of the Power of Attorney is extremely important as it defines what your representative can and cannot do. For example, it might state that your representative can sign a mortgage deed or financial document on your behalf or it might be restricted to signing the Title Deeds.

32. Do I need a Lawyer?

Would you buy a property at home without one?
Do the same in Turkey as you would in buying a property at home.
You will need a Lawyer who operates and knows Turkish law- either one located in the UK or in Turkey.
A good Lawyer will not only safeguard your interests – but save you time and money by acting on your behalf, so that you do not have to visit just to sign documents

33. How many properties can I buy?

If you are an investor, we can give you a mortgage for as many properties as you wish to buy and can afford, but normaly up to 7 properties and no more than 25% of any one development.

Each property will be subject to a separate mortgage agreement and separate Bank charges. This will enable the buyer of multiple properties to sell off individual units without it effecting the other.
All contracts have to be in individual or joint personal names - not that of a company.

29. Will I have to pay ISTANBUL MORTGAGES extra processing fees for each Property?

NO.
One fee – regardless of number of properties and the amount of translations and legal work etc, providing the properties are applied for at the same time.

If you apply for another property at a later date, an additional fee will apply.

30. What would happen if I miss a mortgage payment?

A mortgage is a serious commitment in any country. Just because the property in located overseas does not make it less of a responsibility to maintain payments.
If you cannot maintain payments, the property will be re-possessed asfter sufficient warning  and you would be liable for any short-fall in your own country.

In cases of genuine difficulties, our Lenders have a high level of customer care and  will usually offer financial counselling.

31.What insurance will I need?

The main insurance required are:

1. Life Cover – provided by the Bank and included in your monthly repayments.

b)Earthquake and Building. The Bank will automatically provide these at competitive rates and these can be paid from your Turkish Bank Account.. 

We recommend the additional:

We recommend additional cover:
Third party liability (especially if you are renting your property and have a duty of care to tenants)
Medical (BUPA etc)
Contents

Travel

Mortgage Life Cover (to pay off the loan in case of demise)

34. How much can I re-mortgage my existing Turkish property for?

Up to 60% of the current value, regardless of what  you originally paid..

35.Would I have to pay tax on profits and rental incomes?

There will be no capital gains tax payable in Turkey if you keep the property for at least 5 years. However, your personal tax situation in your home country will still apply and it will be up to you to declare profits and income.

Turkey enjoys a bilateral agreement to avoid dual taxation for UK buyers but taxes are still determined by local authorities. The majority of property ownership is freehold, to include land as well as property.

You will need to pay income tax on rental income.

36.Should I include my Turkish property in my Will?

Definitely - and ensure that your Will in the UK (or home country) is translated and notarised in Turkey otherwise the legal process for your heirs could be very problematic.

Please contact us if you require additional information or if we have not answered your question.  Contact us on:

(044)208 241 5561  - (0) 208 241 0595 
info@istanbulmortgages.com
www.istanbulmortgages.com

IMPORTANT REMINDERS:

1. YOU MUST BE ABLE TO PROVE INCOME WITH BANK STATEMENTS AND P60.

1. YOU MUST HAVE PROOF OF DEPOSIT

1. YOU MUST APPLY AS SOON AS POSSIBLE FOR MILITARY CLEARANCE

1. YOU SHOULD HAVE A LAWYER ACTING ON YOUR BEHALF

1. THE SELLER MUST AGREE TO WAIT UNTIL YOU HAVE MILITARY CLEARANCE

GLOSSARY

TAPU: 3 types:

1. TITLE DEEDS : for Land only (ARSA)
2. KAT-IRTIFAKI showing the individual plots/properties
3. MESKEN – showing present ownership of individual property.

We need to contact your Seller to get either (b) or (c) for your application.

HABITATION CERTIFICATE:
A certificate from the local municipality to say that the building and the development is completed and fit to be occupied.

TITLE OFFICE
A Government office in the local municipality which registers land ownership.
Your lawyer will go there in person (with your power of Attorney) to change the Title from the Seller to your name.
The seller has the responsibility of first organising this.
The Bank then put a charge on the Turkish Title Deed.

Note: Each region processes applications at differing speeds. In Istanbul in can be in days – in Bodrum several months. The fees charged also vasry widely.

Disclaimers:

This information is given in good faith to help you – the customer, and is deemed to be accurate and factually correct at the time of writing.
Istanbul Mortgages will not be responsible for any errors or any changes imposed by Lenders or others that may render this incorrect.