Turkey has become the land of new opportunities for foreign property investors seeking an alternative to the popular holiday hotspots of Spain, Italy and France and it’s easy to obtain a mortgage too.
Whether you are looking to invest in a holiday home in Turkey or considering an investment purchase in Istanbul, getting a mortgage in Turkey is not such a daunting prospect as you might imagine.
If you are looking to leverage your property investment, it is perfectly possible for foreigners investors to raise a mortgage in Turkey and at reasonable rates.
While properties are still exceptionally cheap compared to comparable locations in Western Europe, getting a mortgage to buy property in Turkey is a sensible option, if you which to spread risk, as it allows you to use the extra capital to invest in further properties in different locations.
Mortgages for foreigners in Turkey can be up to 75% loan-to-value (LTV) with interest rates generally low starting from around 4.30% variable rate which compares well with those available in countries like the UK where standard buy to let mortgages are also typically 75% LTV
Turkey’s banks are among the strongest in the world with high liquidity, thanks to years of strong growth in the national economy. Turkey is not nearly as indebted as many Western European countries. Much of the banks’ strength stems from their prudent measures following Turkey’s financial crisis in 2001.
All mortgages in Turkey are recorded in the land registry and they will only be given after a valuation report is received outlining the value of a property and any restrictions in the land registry.
An alternative way to finance your property is through a Turkish bank with European branches. Generally, these international banks have multilingual advisors and are familiar with Turkish property transactions.
Turkey’s mortgage market is growing with more and more finance facilities becoming available. The Central Bank of Turkey recently released data confirming this growth. According to their data, the mortgage market in Turkey is expanding at a phenomenal rate of 20% per annum.