Kibkom North Cyprus Forum

Turk Bank said today the interest rate is rising to 24% today/ How can anyone afford a mortgage here?

Yes very bad a lot of locals and mainland turks are straddled with debt. Credit west apparently do a sterling mortgage available to expats at 6 % or is it 5.5 cant remember . I think i read somewhere that they where stopping locals from borrowing in sterling . In turkey where the interest rates are the same house prices have beng going up and up fueled by a credit boom . Anyone who has been in property n the uk or anywhere else knows where this ends up . House prices do not go up forever. When they are going up in value people want to get on the bandwagon and vice versa.

My advice to people who have properties in UK remortgage to release equity within the home if you are looking to purchase a holiday home in TRNC or looking to raise funds to do home improvements to an existing holiday home in TRNC. Mortgage interest rates in UK are approx 2%

Deniz, I would suggest that unless you are a certified financial advisor that it is unwise to give advice especially in the volatile financial times we live in.

Deniz the only problem is remortgaging for many is not that easy any more since the 2007 credit crisis . I had a mortgage business in the uk prior to the crash so im suitably qualified to comment . Since then the underwriting criteria for prime mortgage acceptance has increased together with lower lending multipls and loan to value . Often the low rates also come with a hefty fee.

The credit west offering may be appropriate for many as from what i can see their underwriting criteria looked light . I doubt they have access to uk credit rating agencies so people with bad credit may likely be accepted . Lots of brits and other expats get roped into buying new developments tempted by developer mortgages at rates of 10 % and at inflated prices as they think that is their only option .

The credit west offer gives people with @ decent deposit to buy better priced resale property at a reasonable interest rate.

Equity release is what I believe to be the new "remortgage", lots of options to suit someone's particular needs & not as risky as a few years ago. I have been able to release approx. 1/3 of the value of my house, & take in chunks to suit me, minimum £1000. Each drawdown will be reassessed for interest purposes but no more fees.

Equity release mortgages are certainly not 2 % interest ....in fact last time i looked they where around 6 %.

Mine is 4%

By the way I am a qualified Mortgage Adviser/Financial Adviser within the industry for the past 36 years ! Sorry for my suggestion . Its only a suggestion and I am not advising anybody . All I was suggesting is if you have a UK own property with equity you can remortgage with rates as low as 2%. Valuation is paid for; so is solicitors and maximum set up fee is £1000. However each application is based on its own merits .

Cally wrote:Mine is 4%

Is that with Credit West ? What is the term ? Is it a 'normal' pay interest and capital sum mortgage (not endowment etc) ? Is it a fixed rate ? If fixed for how long ? If variable what rate is it tied to ? UK base rate ? Thanks in advance for any of these questions you might be able or willing to answer.

Sorry erol i dont know i get the imoression from the website its a fixed rate capital and repayment i doubt it has anything to the uk rate up to 10 year term.I did go to try to find out more before in famagusta i waited an hour thye knew i was english then they told me nobody spoke english and to come back after lunch when alos nibody would still spark english..... I think the kyrenia branches are more expat friendly !

Sorry I may of misled, this is in UK

No i think it was pretty clear u meant uk . All are potential,options of different merits to different people for different reasons.

For most of the people using this board mortgage rates will be irrelevant due age IMHO!
The key relevance is all due to the current Turkish Central bank base rate (about 17.5%) and that TRNC bank interest / saving rates (which follow Turkey) are now at their highest for many years .... About 16 - 18%.
Every little helps!

Silverfox .......have the banks passed this on to their customers ?

Who is paying the best interest at the moment ?