holisticat Posted November 29, 2014 Report Share Posted November 29, 2014 Hi! I'm thinking about buying property in Turkey. I'm thinking about living there about 9 months and here in the UK for 3. Do you know anything about getting a mortgage to buy a house in Turkey? Do lenders have more strict requirements/higher deposits etc? Link to comment Share on other sites More sharing options...
Richlist Posted November 30, 2014 Report Share Posted November 30, 2014 I don't know anything about buying in Turkey specifically but when buying anywhere abroad one of the fundamental decisions is wether to take a mortgage in sterling or local currency. Obviously buying in a major currency such as US dollars or Euros carries some degree of stability but Turkish Lire would make me feel a little uneasy. Link to comment Share on other sites More sharing options...
holisticat Posted December 1, 2014 Author Report Share Posted December 1, 2014 Thanks for the reply. If I get a mortgage from a UK lender it ought to be in sterling though, isn't it? Or do they lend in Turkish Lira? As far as I know mortgage system in Turkey is quite immature at the moment, so I wouldn't want to borrow from them. Link to comment Share on other sites More sharing options...
Richlist Posted December 1, 2014 Report Share Posted December 1, 2014 My experience is primarily with Spain. Spanish lenders lend in Euro. Some of the British banks that have a presence in the country will lend in Euro or Sterling. Its a big decision and both carry advantages and disadvantages. I took a Euro base mortage 10 years ago. The Euro interest rate is lower than Sterling.....mine is 1.5% above the 12 month Eurobor rate ( reset each November for the following 12 months). Currently the 12 month Eurobor rate is 0.34%......so you can see I'm paying 1.84% interest on the loan. The downside is that I have to convert my money from Sterling into Euro and am subject to exchange rate fluctuations and charges. When I took the loan the exchange rate was 1.5 Euro to the £.......today it hovers around 1.2 Euro to the £......so my mortgage costs have effectively risen......although the12 month Eurobor rate has fallen sharply which goes a long way to balancing the movement in exchange rates. However, I will of course gain when the property is sold as the exchange rate has moved significantly in my favour. There are lots of good books available about buying in Spain that also cover financing......I assume there will be some about buying in Turkey and I'd suggest you take a look in WH Smiths or Waterstones. A book might prove a good investment. Link to comment Share on other sites More sharing options...
Melboy Posted December 1, 2014 Report Share Posted December 1, 2014 http://www.ebay.co.uk/itm/Buying-a-Property-Turkey-John-Howell-Paperback-Book-/141487735393?pt=Non_Fiction&hash=item20f1538261 Link to comment Share on other sites More sharing options...
Mortitia Posted December 2, 2014 Report Share Posted December 2, 2014 Property in Turkey, a Muslim country (and getting more so by the minute) seems cheap but the political factions there make it unstable in my opinion for buying propterty - especially with any type of loan. You are not governed by EU regs there - not that the Spanish and French have paid a lot of attention to that. Personally I would not touch it - why not rent - much cheaper and less risk? Link to comment Share on other sites More sharing options...
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