Finance for Your Bulgarian Home

Borrowing Money for your Bulgarian Property

Whether you are buying a Bulgarian apartment, a Bulgarian house or some Bulgarian land, you might need to borrow money to help pay for the property. Even if you are fortunate enough to be a cash buyer, you will probably have to transfer money from your home country to Bulgaria, and also change the money from your own currency to Euro or Bulgarian Leva. Here you will find some information about Bulgarian mortgages, re-mortgages, secured loans and unsecured loans, as well as details on how to send money to Bulgaria.

Bulgarian Mortgages

There are several banks in Bulgaria that offer a range of loans to foreign (that is, non-Bulgarian) property buyers. Mortgages are available on most newly built properties and some renovated properties. If you are buying off-plan, you can normally get a mortgage once the development has been granted Act 14 (basically, when the roof is complete and the property is at the 'rough build' stage). Some banks will lend money at an earlier point in the development, and some will even lend money to buy land for development. Lending rates from established Bulgarian banks start at around 6.7% (June 2008). At Apple Tree Properties, we can help you to arrange loans of up to 80% of the purchase price, depending upon your income. Even if you do not have proof of your income, we can still help you to find a Bulgarian mortgages.

Re-Mortgages

Many people who purchase a Bulgarian property decide to raise the money by taking out a mortgage on their existing home in their own country. This is a very simple and efficient way to finance the purchase of an overseas holiday home. If you don't already have a mortgage on your home, or if you have paid off part of the mortgage, you probably have quite a lot of money (known as 'equity') invested in your home. Many banks and building societies will be happy to offer you a re-mortgage on your home. If you would like more information on re-mortgages on UK property, we can put you in touch with a qualified and mortgage advisor (FSA regulated).

Secured and Unsecured Loans

A secured loan is much safer for the lender as the loan is secured against an asset that you own, most commonly your existing home. If you cannot pay back a secured loan, the lender can take possession of that asset and sell it to get the money back. You can often borrow more money with a secured loan that you would be able to borrow with an unsecured loan. The interest rates are sometimes lower than the rates for unsecured loans. However, you must remember that if you fail to pay back a loan that is secured against your home, you could lose your home.

Unsecured loans are safer for you, but not as safe for the lender, as they are not secured against one of your assets. Because of this, you might not be able to borrow a very large amount, and you might not be able to borrow money over a long period. The interest rates might be higher than those for a secured loan. However, it is more difficult for the lender to seize assets such as your home, car or other belongings in order to get the money back.

Sending Money to Bulgaria

At some point during the purchase of your Bulgarian property you will almost certainly have to pay something in Euro or Bulgarian Leva (BGN). Probably, you will have to send money from a bank account in your home country to a Euro or BGN account in Bulgaria. Apple Tree Properties have teamed up with a well-established currency exchange company in the UK to get our clients the best exchange rates and fastest international money transfer services. For clients in other countries we can offer advice on how to use an online currency exchange service to send money overseas. Why pay the high transfer fees asked by high street banks and building societies. Contact us now and save money on your international payments.