Mortgages are available to foreigners in Turkey, and if you are planning to live in Turkey this may well be the best option. However, if you will be continuing to live and work in the UK you may find that it is easier to fund your Turkish property with a British mortgage or by remortgaging your existing UK home.

By withdrawing equity from your UK home or taking a loan in the UK, you will be able to buy your Turkish property for cash and avoid the time-consuming process of applying for a Turkish mortgage.

You can’t secure a UK mortgage on a Turkish property, but you may find specialist overseas investment companies who will arrange a suitable specialist loan or mortgage.

 

Getting A Mortgage In Turkey

The main difficulty in getting a mortgage in Turkey is the slowness of the process.

If you are planning to buy a Turkish property with a mortgage, it is wise to start your mortgage application before you agree to purchase a property to ensure you do not delay the sale later on.

Turkish mortgages are also only available in certain areas of the country – normally major towns, cities and seaside resorts.

You are very unlikely to be able to secure a mortgage for a remote property in rural Turkey – but in reality, few foreigners want to buy in these areas and prices are very low for those that do, meaning a mortgage may not be needed.

A Turkish mortgage typically has the following terms and restrictions:

Repayment only
Maximum terms of 15-20 years, or until aged 75
Maximum loan value of 70% – 80% of property’s value
Fixed interest rate throughout
Your total outgoings (including mortgage payments) should not be more than 45% of your net monthly income

You may find that these terms vary a little between lenders, but this should give you an idea of what to expect if you decide to seek a mortgage from a Turkish lender.

 

If You’re Employed

Your Turkish mortgage lender will need to see proof of your income and outgoings, and is likely to ask for:

• 6 months’ bank statements
• Proof of income (e.g. employer’s reference)
• Loan/other credit statements
• Most recent UK mortgage statement

In addition, you will need to provide a copy of your passport when applying.

 

If You’re Self-Employed

Non-status (self-certification) mortgages are unheard of in Turkey, and self-employed buyers will have to provide, as a minimum:

• Audited accounts
• Last 6 months’ business bank statements

In addition to this, other evidence of income and outgoings may be required, as will a copy of your passport.

 

Rental Income

Rental income from a holiday home is unlikely to be considered in a mortgage application unless you are making the purchase as a business, rather than an individual.

 

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