Mortgage Help

General questions & discussions on Cyprus property related matters
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naveeda2000
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Joined: 27 Oct 2020 14:47

Mortgage Help

Post by naveeda2000 »

Hi Nigel,

I hoping you can help.

I am looking to build a villa in Cyprus with various family members so we can use it when we want but also able to rent it out during the main tourist season.

We are a bit confused as to what mortgage options we have. I guess in the UK we have the option of self-build mortgages or limited company buy-to-lets would work for us. So the first question would be what mortgage options we have?

Also, we were told by a construction company that due to Brexit all Cypriot banks have stopped lending to UK customers in the meantime, any truth in that?

Many thanks
Naveed
Nigel Howarth
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Re: Mortgage Help

Post by Nigel Howarth »

Hi Naveed and welcome to the forum

As you're planning to build a holiday home, you'll need a housing loan (or something similar.) As an example, you can see what the Bank of Cyprus has to offer at https://www.bankofcyprus.com.cy/en-gb/r ... home_loan/

If you're looking to build a bespoke home, it's essential that one of you is here during the build to ensure it's all going to plan and specification.

As for Cypriot banks not lending to Brits, I've been looking into this. As far as I can tell the problem's restricted to the eastern end of the island.

I've spoken with contacts in Nicosia and Paphos where the banks are granting loans to Brits.

But I heard of a different problem yesterday. As Brits are no longer EU citizens they need permission from the Council of Ministers to acquire property. It seems that the office in Larnaca where the applications are submitted are refusing to accept applications from Brits because they have not been told to look at British applications! I'm looking into this.

Regards,
Nigel Howarth
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Nigel Howarth
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Re: Mortgage Help

Post by Nigel Howarth »

UPDATE

Hi Naveed,

I have just spoken with the Bank of Cyprus International Lending Unit in Nicosia.

They have confirmed that they are unable to extend credit facilities to UK residents after 1/1/21.

I have also spoken with the Cyprus Central Bank. As they have not issued any related directives to the Cyprus commercial banks, it appears that it's a local decision by the Bank of Cyprus.

I'll try and contact the other banks to see if they have introduced the same policy.

Regards,
Nigel Howarth
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Pantheman
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Re: Mortgage Help

Post by Pantheman »

Nigel Howarth wrote: 17 Feb 2021 13:52 UPDATE

Hi Naveed,

I have just spoken with the Bank of Cyprus International Lending Unit in Nicosia.

They have confirmed that they are unable to extend credit facilities to UK residents after 1/1/21.

I have also spoken with the Cyprus Central Bank. As they have not issued any related directives to the Cyprus commercial banks, it appears that it's a local decision by the Bank of Cyprus.

I'll try and contact the other banks to see if they have introduced the same policy.

Regards,
Thanks for that Nigel, very useful.
Do keep us updated.
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naveeda2000
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Re: Mortgage Help

Post by naveeda2000 »

Thanks Nigel I do hope it's just a local or a temporary thing.

In terms of being there during the build as we will be buying the property between a few family members we are planning to make sure there will be someone in Cyprus each month during the build.

Is there any other things we need to be aware of when building a bespoke villa?
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Re: Mortgage Help

Post by Nigel Howarth »

naveeda2000 wrote: 17 Feb 2021 17:41Thanks Nigel I do hope it's just a local or a temporary thing.
Good news. I spoke with the Hellenic Bank's Chief Economist. You should be able to get a loan from them.

You could also try Astro Bank

As for other things you need to be aware of when building a bespoke villa - I'll send you details of what I did (we built a bespoke bungalow.)

Cheers
Nigel Howarth
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Pantheman
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Re: Mortgage Help

Post by Pantheman »

When you say between a few family members, I’m not so sure a bank will lend to multiple people, unless I have misunderstood. Who is responsible to pay the mortgage, what if one of them doesn’t pay what then?
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naveeda2000
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Re: Mortgage Help

Post by naveeda2000 »

Hi Pantheman,

Yes ideally we wanted to purchase the property between the family members but if that would be a problem is it possible to setup up a limited company as an overseas individual and get a commercial mortgage?
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Re: Mortgage Help

Post by Pantheman »

naveeda2000 wrote: 17 Feb 2021 23:39 Hi Pantheman,

Yes ideally we wanted to purchase the property between the family members but if that would be a problem is it possible to setup up a limited company as an overseas individual and get a commercial mortgage?
I cannot say 100% but you will need accounts before any bank will lend you. Are your family members EU nationals? Setting up the company might be easier.

That said you will need 30% of the money from your own funds.

I mean how much are you looking to spend and how many members? It would be easier to arrange finance in your own country rather then here.

Too many unknowns to give any more definitive reply, sorry.
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naveeda2000
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Joined: 27 Oct 2020 14:47

Re: Mortgage Help

Post by naveeda2000 »

All the family members are UK nationals, we have already bought buy-to-let property using a limited company together so that would be our preferred route.

I have reached out to AstraBank who i had an initial chat with on the phone and waiting to hear back from the local bank in Famagusta. Also waiting to hear back from Bank of Cyprus and Hellenic Bank, fingers crossed.

I will keep posting updates, many thanks everyone.
Pantheman
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Re: Mortgage Help

Post by Pantheman »

naveeda2000 wrote: 18 Feb 2021 09:17 All the family members are UK nationals, we have already bought buy-to-let property using a limited company together so that would be our preferred route.

I have reached out to AstraBank who i had an initial chat with on the phone and waiting to hear back from the local bank in Famagusta. Also waiting to hear back from Bank of Cyprus and Hellenic Bank, fingers crossed.

I will keep posting updates, many thanks everyone.
Thanks and good luck, it will be interesting to hear what they have to say.
For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
Member of ETEK Registration No. A201999
https://fsbproperties.com
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