Bulgaria mortgages ‘different'

Property investors considering making a purchase in Bulgaria have been urged to be aware of a number of differences between the country's mortgage market and that of the UK...

According to Quest Bulgaria property magazine the two are largely similar, however the publication has noted that Bulgarian lenders are more cautious than their UK counterparts, meaning those applying for a homeowner loan must have no marks on their credit history.

And banks in the country often value properties at less than the price that is being paid, meaning it is unlikely purchasers will be able to obtain a mortgage at more than 70 per cent of the lender's valuation.

Repayments also differ than from those in the UK, the publication noted, as any cuts in mortgage rates - while being passed on - mean borrowers simply repay their capital at a faster rate rather than their monthly amount being reduced.

Quest recently described Bulgaria property as being a good choice for investors in 2009, as prices in the country have remained "incredibly cheap".

Source: www.propertyshowrooms.com