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Non-Resident Mortgage Requirements

Posted: 08 Jan 2020 15:54
by nath1194
Hello,

First of all, I hope this is posted in the correct place but feel free to inform me if I should better seek answers elsewhere :)

My main query regards my partner and I who are emigrating in August of this year. We have family out in Cyprus who we will be staying with primarily, however very soon hope to buy our own, first property. In order to do this, we will require a mortgage. Whilst we know we will require a 20-40% deposit amount (this is no issue) we have seen great variances between banks in the time required to have been living in Cyprus before you can take a non-resident mortgage out.

Does anyone have any experience with taking one out or is able to provide the duration required by any particular bank to have resided in Cyprus before being considered for an application?

Many thanks,
Nathan

Re: Non-Resident Mortgage Requirements

Posted: 08 Jan 2020 19:09
by Nigel Howarth
Hi Nathan and welcome to the forum.

Non-resident mortgages are designed for those not resident in Cyprus. Once you move here and register with the Immigration authorities and the Tax Department you will be resident and will be able to apply for a standard mortgage from any of the banks.

I don't really understand why you want a non-resident mortgage?

Regards,

Re: Non-Resident Mortgage Requirements

Posted: 08 Jan 2020 19:38
by Pantheman
My understanding is that a 'n0n-resident' mortgage is not a mortgage at all, but an investment loan and usually at a much higher interest rate.

So, if you plan to remain here, do the this nags that Nigel as stated before applying for the mortgage. Although, you may have to have a rental agreement or title for a property as an address, I am not so sure they will accept living with family.

The yellow slip will also require you to have some form of income, job, rent from a UK property, pension or such like and medical cover insurance.

Good luck.

Re: Non-Resident Mortgage Requirements

Posted: 09 Jan 2020 22:23
by nath1194
Nigel Howarth wrote:
08 Jan 2020 19:09
Non-resident mortgages are designed for those not resident in Cyprus. Once you move here and register with the Immigration authorities and the Tax Department you will be resident and will be able to apply for a standard mortgage from any of the banks.
I don't really understand why you want a non-resident mortgage?
Hi Nigel, thanks for your response.

I was under the impression that the yellow slip wouldn't permit us to apply as residents, but could as non-residents, but perhaps I'm confusing that with Permanent Residency? Can I just confirm then, once we have the Certificate of Registration (yellow slip), we would be permitted to apply for a Residents Mortgage/normal Mortgage arrangement? I think I have become confused between Resident and Permanent Residency.

Many thanks for your clarification.

Thanks also Pantheman, that makes sense at what I've read so far!

Re: Non-Resident Mortgage Requirements

Posted: 12 Jan 2020 11:28
by Nigel Howarth
Hi Nathan

I've been trawling the banks and the loans they offer. The only one I've found that mentions residency is the Bank of Cyprus Investment Loan, which states:

"The scheme is offered to permanent residents of Cyprus only. If you are not a permanent resident of Cyprus for the last 5 years, call in at any of our Bank of Cyprus branch to find out about your options."

I'm pretty sure that you'd be able to get a 'normal' mortgage. Maybe your family here could check with their bank?

To get a mortgage, the property you're purchasing must have a Title Deed. If you buy a property without a Title Deed (which is not recommended given the on-going problems) you will be offered a home loan. This is because a mortgage uses the property being purchased as collateral - and without a Title Deed, a property does not exist. Furthermore when/if a Title Deed for the property is issued, the bank will convert the home loan to a mortgage and lodge it as a claim against the property - and the Land Registry will charge you 1% of the loan advanced (not the balance of the loan) for this 'service'.

If you have the choice of which currency to have the mortgage, you should choose the money in which your income derives. This will avoid vagaries in exchange rates.

Regards,

Re: Non-Resident Mortgage Requirements

Posted: 13 Jan 2020 15:47
by nath1194
Hi Nigel,

This information is perfect thank you so much for your help. Very much appreciated!

Regards,
Nathan