New Estate Finance works with the active lenders in the market, we will consult all of them regarding your application.
We have offices in London, Sofia and Varna and are happy to discuss your options over the phone or face to face.
‘Pay as You Apply’ – no upfront fees for future stages of the mortgage application process. You pay for each stage as we process it.
We will refund your 1st stage ‘Pre-approval’ fee if we fail to find you a lender.
When should I apply?
You should apply when you know your property is nearing completion or 3 months before final payment is due. Some ‘off plan’ purchases require final payment once the building has reached ‘Act 15’, most require it upon ‘Act 16’. Sometimes known as the ‘Residency Permit’ Act 16 is crucial to achieving a mortgage, please contact us if your property is only at the Act 15 stage or if your developer is demanding payment from you at Act 15, we will still be able to help you.
How much can I borrow?
Despite the current economic climate, it is still possible to borrow 70% of the value of your property, however the majority of applications are only granted around 50%. The value of your property is not necessarily what you agreed to pay for it. An independent evaluator will decide on the value and it is this figure that will be used to calculate all mortgages, not the purchase figure agreed between you and the vendor. Valuations can be more than the purchase amount, sometimes less.
How much will it cost?
Some brokers charge in excess of 2,000 Euros fees and ask for it upfront, however our ‘Pay as You Apply’ mortgage works in a much simpler and more cost effective way. Just four straight forward costs and you only ever pay for the next step ahead:
200 Euros for initial approval, refundable if unsuccessful.
450 Euros administration fee to make full application on your behalf (in Bulgarian) to the bank of your choice.
100-400 Euros bank application fee varying according to the bank and the product.
Up to 1% of the total amount of the mortgage loan upon signing of the contract with the bank.
The initial 200 Euro administration fee is 100% refundable should you not receive a mortgage ‘Pre Approval’ offer, as such there is no risk and no fee for just ‘finding out’ if you can achieve mortgage. Every bank charges a varying amount, it is only possible to provide a final figure once a particular bank and mortgage product have been selected.
Key aspects of our mortgages:
• No minimum amount
• The value of the property is key, not the earnings of the client
• Title deeds value is irrelevant as an independent valuation decides the market value
• Up to 70% of the value of the property can be borrowed (depending on region and property type)
• Best rates are for shorter term mortgages
• From 5-20 years lending
• Interest rates from 7.5%
Interest Rates:
The total amount being borrowed and the number of years over which it will be paid back will vary your interest rate. Options start from around 7.5% and can climb to 9.5%, however for a specific figure a particular bank and product must be selected.
Mortgage Calculator:
To find out what the monthly repayments could be please use our mortgage calculator by clicking the link "Mortgage Calculator" on the toolbar above. Enter the amount you wish to borrow and over what period and click calculate.
Documents:
The exact documents you will need to submit will be determined by the lending bank, but most likely it will some or all of the below:
• Statement of earnings from Inland Revenue / Tax return
• Employment contract
• 6 months bank statements
• Recent pay-slips
• Reference from your Bank
• Statement from a credit agency or bureau giving information about all current financial obligations and liabilities from Equifax or Experian
Disclaimer: Please note, your property may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt. This is not a UK regulated mortgage. |
| Mortgage with Investbank Bulgaria
for non-Bulgarian nationalities | | | Currency | EUR | Maturity | up to 20 years | Amount | up to EUR 50 000 | Loan / value | up to 70% of the evaluation price of the real estate, accepted as collateral, as determined by the Bank. | Interest | 13.9% | Grace period | No grace period | Repayment schedule | In equal monthly installments | Age restrictions | Minimum age for loan applicant – 26 years.
Maximum age for loan applicant including the mortgage period - 65 years | Bank fees | 1. Application fee – EUR 200. In case of refusal, the fee is non-refundable
2. Management fees-one - off disbursement fee – 2 % ;0.5% p.a. for every next year over the remaining loan amount
4 % on the pre-mature repaid amount only if refinanced by another bank;
4. Re-negotiating fee - EUR 30
5. All the other fees and commissions are according to the Bank Tariff. | New Estate Administration fees | 200 EUR –one off engagement fee, refundable in case that agreement in principal with the bank is not achieved..
450 EUR – one off administration fee for application preparation and submission
1% of the total value of the loan, but no less than EUR 1000 prior to the signing of he mortgage agreement | Opening a bank account at the bank | Required | Insurance | Required | Other conditions | The customer must provide and keep 6 monthly instalments in advance at the bank account |
| Mortgage with MKB Union Bank Bulgaria
for non-Bulgarian nationalities | | | Currency | EUR | Maturity | up to 20 years | Amount | up to EUR 100 000 | Loan / value | up to 35% of the evaluation price of the real estate, accepted as collateral, as determined by the Bank. | Interest | First Year - Fixed - 8.15%,
After 1st Year - The interest rate is floating, defined by 6M EURIBOR + fixed margin 3.00, but no less than 8.15% | Grace period | No grace period | Repayment schedule | Annuity | Age restrictions | Minimum age for loan applicant – 26 years.
Maximum age for loan applicant including the mortgage period - 65 years | Bank fees | 1. Application fee – EUR 350. In case of refusal, the fee is non-refundable
2. Management fees-one - off disbursement fee – 1,5 %
3. Pre-mature repayment fee -2 % on the pre-mature repaid amount;
4. Re-negotiating fee - 1 % on the outstanding amount.
5. All the other fees and commissions are according to the Bank Tariff. | New Estate Administration fees | 200 EUR –one off engagement fee, refundable in case that agreement in principal with the bank is not achieved..
450 EUR – one off administration fee for application preparation and submission
1% of the total value of the loan, but no less than EUR 1000 prior to the signing of he mortgage agreement | Opening a bank account at the bank | Required | Insurance | Required | Other conditions | The customer must provide and keep 6 monthly instalments in advance at the bank account | | |
| Mortgage with Allianz Bank Bulgaria
for non-Bulgarian nationalities | | | Currency | EUR, USD | Maturity | From 5 till 20 years | Amount | Up to EUR 100 00 | Value | Up to 60 % of the market price of the property | Interest | From 7.5%, depending on the self financing percentage, loan lengths and personal circumstances | Grace period | No grace period | Repayment schedule | Annuity, | Age restrictions | Maximum age for loan applicant including the mortgage period - 60 years for women, 63 years for men | Bank fees | 2% of the loan value | New Estate Administration fees | 200 EUR –one off engagement fee, refundable in case that agreement in principal with the bank is not achieved..
450 EUR – one off administration fee for application preparation and submission
1% of the total value of the loan, but no less than EUR 1000 prior to the signing of he mortgage agreement | Opening a bank account at the bank | Required | Insurance | Required | Other conditions | The customer must provide and keep 6 monthly instalments in advance at the bank account |  | Mortgage with Piraeus Bank Bulgaria
for non-Bulgarian nationalities | | Currency | EUR | | | | | Maturity | up to 25 years | | | | | Amount | From 50,000 Euros, No Upper Limit | | | | | Loan / value | 75% LTV for the Purchase of residential property (excluding studio flats) or land with residential planning permission in Bulgaria | | | | | Interest | One month Euribor plus fixed margin of: | Initial rate (Current Euribor 2.692%) | Overall cost for comparison* | 3.25% | 5.942% | APR 6.38% | 3.50% | 6.192% | APR 6.73% | 3.75% | 6.442% | APR 6.92% | 4.00% | 6.692% | APR 7.27% | * APR is calculated on a maximum term, minimum loan amount, non-company mortgage on an apartment at a Euribor rate of 2.692% as at29thDecember 2008 | | | | | | Grace period | No grace period | | | | | Age restrictions | Minimum age for loan applicant – 21 years. Maximum age for loan applicant including the mortgage period - 70 years
Applicants are assessed on individual affordability (up to 30% of projected certifiable rental income on the property to be mortgaged may be included when assessing status)
Companies: must be non-trading, incorporated in Bulgaria solely for the purpose of this transaction; a maximum of 2 members, who meet individual eligibility and guarantee the mortgage | | | | | Bank fees | GBP175 for company applicants where company details are not known at time of application
1% of loan amount for individuals; 2% for companies
GBP125 for apartments or land; contact us for houses
Applicant is responsible for instructing a Bulgarian lawyer and their fees; and is responsible for the Bank’s legal costs Early Repayment: 3% in year 1, 2% in year 2, 1% in year 3 | | | | New Estate Administration fees | 200 EUR –one off engagement fee, refundable in case that agreement in principal with the bank is not achieved..
450 EUR – one off administration fee for application preparation and submission
1% of the total value of the loan, but no less than EUR 1000 prior to the signing of he mortgage agreement | | | | | Opening a bank account at the bank | Required | | | | | Insurance | Building insurance Required, Life insurance not mandatory | | | |
| Mortgage with UBB (United Bulgarian Bank)
for non-Bulgarian nationalities | | Currency | EUR | | | | | Maturity | up to 20 years | | | | | Amount | From 7,500 Euros, maximum of 250,000 | | | | | Loan / value | 70% LTV for the Purchase of residential property (including studio flats) | | | | | Interest | 8.5% average | | | | | Grace period | No grace period | | | | | epayment schedule | Annuity | | | | | Age restrictions | Minimum age for loan applicant – 23 years.Maximum age for loan applicant including the mortgage period - 65 years | | | | | Monthly Debt related expense | Applicants will be remain eligible with up to approximately 40% of their monthly net income allocated to debt associated payments such as; credit cards, mortgages, personal loans, car financing. | | | | | Bank fees | 1.25% once off, payable at upon loan agreement
0.9% of the outstanding loan principal per annum
Application cost 40 Euros
Applicant is responsible for instructing a Bulgarian lawyer and their fees; and is responsible for the Bank’s legal costs
Early Repayment: 5% during the first 3 years, 3% during the remaining period | | | | | New Estate Administration fees | 200 EUR –one off engagement fee, refundable in the event of a ‘pre-approval’ or ‘agreement in principal’ is not achieved
450 EUR – one off administration fee for application preparation, translation, collection of documentation and submission
1% of the total value of the loan, but no less than EUR 1000 prior to the signing of he mortgage agreement | | | | | Opening a bank account at the bank | Required | | | | | Insurance | Building insurance Required, Life insurance not mandatory | | | | | Other conditions | The customer must provide and keep 6 monthly instalments in advance at the bank account | | | |  | Mortgage with Alpha Bank
for non-Bulgarian nationalities | | Currency | EUR | | | | | Maturity | up to 30 years | | | | | Amount | From 10,000 Euros, no upper limit | | | | | Loan / value | 80% LTV for the Purchase of residential property (including studio flats) | | | | | Interest | 6.00% fixed interest rate for the first year and then floating interest rate 3M EURIBOR + spread 6.50% for the remaining period.
The floating interest rate is adjusted every 3 Months.
The value of 3M EURIBOR is 2.13% as of 29.01.2009. | | | | Grace period | Up to 12 months In case of grace period the interest rate is according to the chosen repayment schedule. | | | | | Repayment schedule | Monthly annuity instalments after the grace period. | | | | | Age restrictions | Minimum age for loan applicant – 23 years. Maximum age for loan applicant including the mortgage period - 65 years | | | | Monthly Debt related expense | Applicants will be remain eligible with up to approximately 40% of their monthly net income allocated to debt associated payments such as; credit cards, mortgages, personal loans, car financing. | | | | | Bank fees | Up to 1.75% of the loan value payable upon final agreement of the loan
Annual charge; various according to Alpha’s tariff, average 0.8% / year
Application cost 200 Euros
Applicant is responsible for instructing a Bulgarian lawyer and their fees; and is responsible for the Bank’s legal costs
Early Repayment: 5% during the first 3 years, 3% during the remaining period | | | | | New Estate Administration fees | 200 EUR –one off engagement fee, refundable in the event of a ‘pre-approval’ or ‘agreement in principal’ is not achieved
450 EUR – one off administration fee for application preparation, translation, collection of documentation and submission
1% of the total value of the loan, but no less than EUR 1000 prior to the signing of he mortgage agreement | | | | | Opening a bank account at the bank | Required | | | | | Insurance | Building insurance Required, Life insurance not mandatory | | | | | Other conditions | The customer must provide and keep 6 monthly instalments in advance at the bank account | | | | | |
1. Introduction
Your application for a Bulgarian mortgage will begin with you providing details of your financial status and the property which you would like to purchase. The simplest way to achieve this is to complete our questionnaire on line or alternatively you can download the form from the here, once complete please email or post to our London office. See the address.
2. Achieving Mortgage ‘Pre-Approval’ from the Banks
Upon receipt of the questionnaire we will extract necessary information in order to prepare approaches to a range of banks offering suitable mortgage products to fit your requirements, the property type and your financial status. The result from the bank will either be rejection or for you to be classified as an acceptable candidate for lending for your chosen property and offer you a letter of ‘pre-approval’.
This will normally take 15 days, during which time we will require various pieces of information and documentation to certify and clarify the facts stated in the questionnaire, for example; a copy of your passport, pay slips, employment contract, Equifax report etc. Different lenders ask for different documents, however we will give you due notice when documents are required. To initiate this phase a fee of 200 Euros is required accompanied by a singed consent form. Should you not receive a mortgage ‘pre-approval’ for whatever reason the fee of 200 Euros will be refunded to you so there is no financial risk in just trying to see what you can borrow.
3. Preparation of Application and Submission to the Banks
Upon receipt of the ‘pre-approval’ from a Bank a secondary administrative fee of 450 Euros is required in order to process the mortgage through to completion. Power of Attorney must be granted to us at this stage so that we can legally represent your application on your behalf. We will prepare and provide you with this document which will vary according to the Bank’s conditions, it will need to be signed in front of an official Bulgarian Notary who are available commonly in Bulgaria or at the Bulgarian embassy in London. Should you decide to have this certified at the Embassy there are fees for this service which are imposed by the Bulgarian Government.
At this stage a full application will need to be made for a particular mortgage product, this carries a bank fee which can vary from approximately 100 to 400 Euros. These funds are generally associated to their administrative time and for acquiring an independent property valuation from a licensed estimator who will visit your property and provide an official assessment.
At this stage the required documents will vary depending according to the Bank, buyer and vendor.
In general, the required documents are amongst the below:
1. Copy of the identity document of the applicant(s), legalised by Bulgarian Notary.
2. Application for credit in accordance with bank form, signed by the applicant(s) or his/her (their) attorney, who is going to represent him/her (them) in front of the bank in connection with the requested credit and who is going to sign the agreement for receiving a credit.
3. Declaration of citizenship and property status, in accordance with the bank forms, signed personally by the applicant(s).
4. Power of attorney and a letter for taking on mortgage responsibility, legalised by a Bulgarian Notary.
5. Documentation for the ownership of the property, subject of the deal and/or acceptance of security.
6. Certificate for lack of encumbrances on the property, offered as a security for the loan.
7. Documents proving incomes, credit history of the applicant(s), legalised according to the country or origin, as follows:
For employed persons
• Bank statements for the past 6 months of the account to which the applicant(s) receives income, certified by the respective bank;
• Reference from the bank where the account is held;
• Documents from the employer showing income taxes paid by the client for the previous year;
• Documents representing the salary received in the past 6 months, certified by the employer.
• Documents from the employer confirming employment to the date of signing the application for credit.
For self-employed persons
• Bank statements for the past 6 months of the account to which the applicant(s) receives income, certified by the respective bank;
• Reference from the bank where the account is held;
• Tax Return or Tax declaration for the previous 2 years
Those documents detailed above do not represent every type that might be required during the process of application.
4 Final Contrat.
Upon the final approval of the application the bank will issue a final contract where all the condition of the mortgage will be stated. Practically upon signing of this contract the mortgage procedure is completed. Prior to the signing of the contracts between the customer and the bank New Estate requires a payment of 1% of the total amount of the credit but no less than 1000EUR
5.Timescale and Translations
The timescale for the whole process can vary considerably from approximately 2-6 months, as such it is impossible to provide a very accurate estimate before the pre-approval is achieved. Once it is identified which product is best to apply for and which institution will be lending then we will be able to give you a good estimation. We always advise to at least achieve the pre-approval well in advance so that the bank is familiar with your case and the main application can follow without delay. The main application should only begin once your property reaches a more advanced stage or once the developer notifies you of an accurate completion date, as such you only pay for the parts of your application that are either underway or already achieved.
All the documents and bank applications will be in Bulgarian, should you require them in English then translations can be made by New Estate Finance, but these will be at a per page cost and at the clients expense.
The fees of 450 Euros to New Estate Finance and 100-400 Euros to the Bank are non refundable should the application fail to result in successful lending. This can be the case when the vendor or client makes an error in the provision of information or when the Bank denies lending due to policy or product change. Although rare, it must be accepted that this is possible even if a pre-approval having been earlier achieved.
***You can find more information about each of the credit institutions we represent, as well as more details about interest rates, terms and conditions as well as fees on New Estate’s website. |
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