Turkish mortgages

daveb80

Hi all,

I was wondering if anyone could give me some advice on Turkish mortgages.

As you probably know, mortgages are still fairly new in Turkey and from what I have searched for so far it seems the max LTV is 80%.
Does anyone know of any other mortgage companies that offer Turkish mortgages with more LTV (ie 85/90%) to UK based people?

Also, my wife is Turkish so I was wondering if this would help in terms of what mortgages we could get? Or any help at all?

Finally, we own one property in Istanbul already. This was her mum's house but she signed it over to us last year. The mortgage has been paid off on this property already by her mum a few years back. Could we use this at all to enable us to get a mortgage for another place? We don't really want to sell it.

Sorry if these are seemingly basic questions!

Thanks
Dave

holly_hobby

You won't get a UK lender to finance the pch of a property in Turkey - suggest remortgage of your own UK residence for this purpose.

Turkish mortgage - broadly speaking re the mge itself, max LTV 80%, repayable on a repayment basis over a max term of 20 yrs (max age 75). Status checks - bank statements, income verification, mge lenders statement

Regarding raising finance on the propety in Istanbul - this will have to be accomodated by a Turkish Bank - again no UK lender will secure finance on a property based on Turkey (due mainly to its unstable economy).

You will have to have a google, there are finance advisers here in the UK who can facilitate a Turkish based mge, and know the system and requirements - you shall have to contact them for assistace.

Hope this helps

Holly

daveb80

Hi, thanks for the reply! The info provided is very useful!

Thanks again

sabretoothtigger

Do they imprison debtors similar to Dubai.



If borrowing money in sterling or lira I would choose the weaker currency which imo is sterling. If you earn money in sterling and have a debt in lira then it would be painful to see their exchange rate strength vs ours.

I think that happened to some with spanish homes in the last decade

holly_hobby

sabretoothtigger wrote: »

If borrowing money in sterling or lira I would choose the weaker currency which imo is sterling. If you earn money in sterling and have a debt in lira then it would be painful to see their exchange rate strength vs ours.

I think that happened to some with spanish homes in the last decade

Spanish homes - euro based mortgages subject to the euro zone fluctuations, over building and fall in demand, and now euro fall out - and are a completely different kettle of fish to Turkey.

Turkey are neither in the EU nor have a stable economy -which is one of the reasons why a) they want to become a member of the EU and b) why EU members won't agree their membership. The EU will never agree membership until their economy is more robust, as they don't want the bail out problems, which we are currently witness to of Greece & Eire with Portual & Spain on the brink - all Euro economy.

To summarise Turkish Lira is neither a stronger currency nor do they have a stronger economy than the UK or GBP sterling (or the Euro) .... in fact its really rather the opposite as demonstrated.

Indeed Turkish businesses themselves who are exposed to currency fluctuations and import, do so and trade in either US Dollar or Euro - not TL - and the only reason why they don't trade in sterling is because its simply too expensive for them.

Which is why you won't get a UK lender to touch a turkish property or mge.

My opinion is based on the fact that my Hubby has business dealings and regularly visits businesses in both Turkey & Greece (whom all pay in Sterling - Turkey especially due to their weak currency) - so I base my comments on personal experience and knowledege.

But the OP must make and be secure in their own decision (if given the option) - we can only give opinion.

Hope this helps

Holly

sabretoothtigger

Turkey are neither in the EU nor have a stable economy

Looking forward I see them as a superior economy to EU or here because they have higher GDP growth. I know they've not always done well and dont have the credibility uk does

Turkish inflation annually for May was 7.2% where as ours is around 5% I think and their gdp growth was 8.9% in 2010 and ours no more then 2% ?

The exchange rate doesnt seem to reflect any great weakness on their half

holly_hobby

Well unfortunately the EU member states don't see it quite the same way - hence their refusal of Turkey to become an EU member state.

Turkey have a population of 85m, workforce of 22m - Turkey exports are car manufacturing and textiles forming the basis of their GDP - with interest rates of 15% in recent yrs.

None of which changes any advice given to the OP - UK banks don't lend in TL or on properties located in Turkey.

Turkish banks (as far as my Hubby is aware who actually deals with Turkish business owners) don't lend in sterling.

So the relevance of this particular review of the Turkish GDP is both irrelevant to the question in hand or of any assistance to the OP.

Holly

Leon_W

Try Viva Costa

http://www.vivacostainternational.com/index2.php

sabretoothtigger

#Turkey's armed forces chief resigns, along with heads of army, navy & air force, Turkish TV reports - Reuters

Wonder what thats about, for a formerly military led country thats big news

hence their refusal of Turkey to become an EU member state.

and join Greece as an example of good governance, seems like a inadvertent compliment

FraudBuster

sabretoothtigger wrote: »

Wonder what thats about, for a formerly military led country thats big news

and join Greece as an example of good governance, seems like a inadvertent compliment

Turkey and Greece in the same thread?

High Risk Jurisdictions along with the usual suspects.

The Treasury added that UK financial institutions and approved persons should also be aware of the risks posed by North Korea and São Tom! and Pr!ncipe. They are advised to take this into account with respect to their systems and controls to counter financial crime, the Treasury said.

In the second part of the advice the Treasury assessed a separate FATF statement regarding AML deficiencies in the following countries: Angola, Antigua and Barbuda, Azerbaijan, Bolivia, Ecuador, Ethiopia, Greece, Indonesia, Kenya, Morocco, Myanmar, Nepal, Nigeria, Pakistan, Paraguay, Qatar, Sri Lanka, Sudan, Syria, Thailand, Trinidad and Tobago, Turkey, Turkmenistan, Ukraine and Yemen. Again, the Treasury warned firms to take account of their systems and controls when dealing with the countries.

http://www.bankersalmanac.com/addcon/news/HM-Treasury-sets-out-high-risk-money-laundering-jurisdictions.aspx