Bulgaria is a relatively new opportunity for property purchasing and as such the number of finance options is still very limited. This article will briefly explain your options and make you aware of a couple of areas where you should be vigilant.

 

If you are not able to purchase in cash then you are left with two main options:
1) Secure a mortgage against UK property and buy in cash.
2) Secure a mortgage against a Bulgarian Property.

 

The second option of securing a mortgage against a Bulgarian property is a relatively new phenomenon and as such there are currently only three possibilities. If you are a UK citizen and earn a combined provable income (by a payslip or a bank statement) of at least Ј15,000 and have a clean credit record then you would qualify for a Bulgarian mortgage of up to €200,000 The interest rates are between 6%-7% variable and they are available on repayment only for a term of up to 20 years with a 70% mortgage of the properties value available.

 

Many property sales in Bulgaria are off plan and hence you will have to often pay not only a deposit but also staged payments.

 

Finally, the process of getting a mortgage in Bulgaria is different to that in the UK, you will often need power of attorney to be in place in Bulgaria to sort out property insurances, completion of the mortgage and other legal requirements, this can be uncomfortable as giving someone power of attorney is rare in the UK but it is common place in other countries.