It is possible for foreign buyers to get a mortgage from a Croatian lender, and if you are planning to receive any income or spend a considerable amount of time in Croatia it may be your best choice.
However, the range of mortgage products available is relatively limited compared to the UK, and you should also factor in exchange costs when considering a mortgage in another currency.
Remortgaging your UK home or taking a separate loan or mortgage from a UK lender may be a better option – it is worth talking it over with an overseas mortgage specialist to see what your options are.
Getting Mortgages In Croatia
The mortgages offered to foreign buyers by Croatian lenders are often fairly conservative, especially with regard to the size of the loan. Lenders will typically offer:
50% – 60% of the property’s value
Terms of up to 15 years, or your 65 th birthday
Maximum monthly payment of less than 35% of net monthly income
Arrangement fees of approximately 3%
Repayment only
Choice of currency (Euro or Croatian Kuna)
Any mortgage taken out will also require you to have a bank account in Croatia, but this can be setup with your mortgage.
If You’re Employed
Non-status (self-certified) mortgages are not available in Croatia, so employed borrowers will be required to provide full proof of income and outgoings, as well as a legalized copy of their passport.
You’ll need:
Past 3 months’ payslips (including official translation)
Past 3 months’ bank statements
Details of other outgoings (e.g. UK mortgage / loan)
Of course, you should also request (or arrange) translated copies of the documents relating to the mortgage policy before you sign them.
If You’re Self-Employed
Self-employed buyers will need to provide copies of:
Last two years’ audited accounts
Last year’s tax return
6-12 months’ business & personal bank statements.
It may be necessary to translate some documents and a letter from a chartered accountant detailing your personal drawings from your business may also be required.
Rental Income
While rental is allowed and even encouraged in Croatia, potential rental income will not be taken into consideration with a mortgage application, so you will need to be able to afford the payments without the rental income.