Whether you are buying a Bulgarian apartment, a Bulgarian house or some Bulgarian land, you might need to borrow money to help pay for the property. Even if you are fortunate enough to be a cash buyer, you will probably have to transfer money from your home country to Bulgaria, and also change the money from your own currency to Euro or Bulgarian Leva. Here you will find some information about Bulgarian mortgages, re-mortgages, secured loans and unsecured loans, as well as details on how to send money to Bulgaria.

Bulgarian Mortgages and Bulgarian Home Loans

Bulgarian mortgages and loans are available to foreign (that is, non-Bulgarian) property buyers through several banks in Bulgaria. Mortgages are available on most properties and some renovated properties. If you are buying off-plan, you can normally get a mortgage once the development has been granted Act 14 (basically, when the roof is complete and the property is at the 'rough build' stage). Some banks will lend money at an earlier point in the development, and some will even lend money to buy land for development. Lending rates from established Bulgarian banks start at around 6.7% (September 2008). At Apple Tree Properties, we can help you to arrange loans of up to 80% of the purchase price, depending upon your income and the type of property. Even if you do not have proof of your income, we can still help you to find a Bulgarian mortgage.

When to Apply for A Bulgarian Mortgage or Bulgarian Home Loan

The very best time to contact us about a Bulgarian mortgage is before you travel to Bulgaria to search for a property. We can collect the information that we (and the banks) need, and find the best type of mortgage for you. In most cases we can obtain an "offer in Principle" from a bank before you go to Bulgaria. (An "offer in Principle states that a bank will lend you a specified amount of money, as long as your financial circumstance remain the same and that you choose a mortgageable property.) You can then book your flights to choose a property in Bulgaria with the confidence that a Bulgarian mortgage or Bulgarian home loan has already been approved.

Clients who purchase a property through Apple Tree Properties will get a 50% discount in the fees that we charge to arrange a Bulgarian mortgage. In some cases we can arrange a mortgage for free. Please note that this offer refers to Apple Tree Properties' arrangement fees. It does not apply to any fees that are charged by the banks.

Supporting Documents for a Bulgarian Mortgage or Bulgarian Home Loan

Each bank in Bulgaria produces its own application form and asks for some documents to support the application. The number of documents required will depend on the bank and the type of mortgage that you want. Below are lists of some of the documents that you might be asked to produce.

Mortgage Applicants who Work for Somebody Else (Another Person or Company)

You might be asked to produce copies of the following documents.

Proof of your identity:

• Passport, identity card or driver's licence
• Birth certificate
• Marriage certificate

Proof of your permanent address:

• Recent utility bill (for example a gas or electricity bill)
• Rental agreement (if you are a tenant)

Proof of your income and expenses:

• Wage or salary slips covering the last 3 to 6 months
• Letter from your employer to confirm your employment
• Bank statements covering the last 6 months
• Mortgage statement, if you already have a mortgage on any property
• Rental agreement (if you are a tenant)
• Details of any other regular expenses
• Your credit rating and credit report from Equifax or Experian

Self-Employed or People who are in Partnership

You might be asked to produce copies of the following documents.

Proof of your identity:

• Passport, identity card or driver's licence
• Birth certificate
• Marriage certificate

Proof of your permanent address:

• Recent utility bill (for example a gas or electricity bill)
• Rental agreement (if you are a tenant)

Proof of your income and expenses:

• Details of your company (name, address, tax registration, date the company was formed)
• Financial accounts covering the last 3 years
• A letter from your accountant
• Mortgage statement, if you already have a mortgage on any property
• Rental agreement (if you are a tenant)
• Details of any other regular expenses
• Your credit rating and credit report from Equifax or Experian

Re-Mortgages

Many people who purchase a Bulgarian property decide to raise the money by taking out a mortgage on their existing home in their own country. This is a very simple and efficient way to finance the purchase of an overseas holiday home. If you don't already have a mortgage on your home, or if you have paid off part of the mortgage, you probably have quite a lot of money (known as 'equity') invested in your home. Many banks and building societies will be happy to offer you a re-mortgage on your home. If you would like more information on re-mortgages on UK property, we can put you in touch with a qualified and mortgage advisor (FSA regulated).

Secured and Unsecured Loans

A secured loan is much safer for the lender as the loan is secured against an asset that you own, most commonly your existing home. If you cannot pay back a secured loan, the lender can take possession of that asset and sell it to get the money back. You can often borrow more money with a secured loan that you would be able to borrow with an unsecured loan. The interest rates are sometimes lower than the rates for unsecured loans. However, you must remember that if you fail to pay back a loan that is secured against your home, you could lose your home.

Unsecured loans are safer for you, but not as safe for the lender, as they are not secured against one of your assets. Because of this, you might not be able to borrow a very large amount, and you might not be able to borrow money over a long period. The interest rates might be higher than those for a secured loan. However, it is more difficult for the lender to seize assets such as your home, car or other belongings in order to get the money back.

Sending Money to Bulgaria

At some point during the purchase of your Bulgarian property you will almost certainly have to pay something in Euro or Bulgarian Leva (BGN). Probably, you will have to send money from a bank account in your home country to a Euro or BGN account in Bulgaria. Apple Tree Properties have teamed up with a well-established currency exchange company in the UK to get our clients the best exchange rates and fastest international money transfer services. For clients in other countries we can offer advice on how to use an online currency exchange service to send money overseas. Why pay the high transfer fees asked by high street banks and building societies. Contact us now and save money on your international payments.